Minet Kenya has launched an insurance premium financing offering enabling easy payment of premium in instalments. This is in partnership with Momentum Credit Limited.
Minet Kenya chief executive officer Sammy Muthui said that the plan allows individuals and entities to pay a deposit equivalent to 20% of the value of their insurance premium to activate the cover. “In these rapidly changing times, we have been thinking about the welfare of our clients and the challenges that they are facing as a result of the Covid-19 pandemic,” said Mr. Muthui. “Recent reports indicate that the pandemic has forced many Kenyans to cut down on their household expenditure including insurance premiums,” he added.
The solution will enable the underwriter’s clients to meet their cash flow obligations without having to withdraw their savings or liquidate their assets. The industry regulator – Insurance Regulatory Authority – requires policyholders to pay their premiums upfront. “The cash-and-carry rule in effect at the moment requires that the insured pay their premiums in full before a policy is activated,” emphasized Mr. Muthui. “However, many Kenyans are not able to pay their premiums upfront as required by the law,” he added.
The payments will be spread over an agreed period of between one and eleven months and Minet will act as the billing and collecting agent. The solution is available to both individuals and organizations and covers annual premiums ranging from Kshs. 5,000 to Kshs. 2 million. The chief executive officer of Momentum Credit, Mr. Job Muriuki noted that the partnership is in line with the lender’s vision of offering transformative solutions. “This is a revolutionary product which makes even comprehensive insurance an affordable reality for all motor vehicle owners.” Mr. Muriuki said.