New cover to pay for loss of job

PHOTO | FILE Customers processing their salaries through Barclays Bank will receive three months salary if they lose their jobs under a new insurance policy.

What you need to know:

  • The salary retrenchment cover, provided in a partnership between Barclays, Pan Africa Life and MicroEnsure, is meant to support retrenched staff who hold an account with the bank.
  • The cover is a free value addition product meant to attract more employees to process their salaries through the bank.

Customers processing their salaries through Barclays Bank will receive three months salary if they lose their jobs under a new insurance policy.

The salary retrenchment cover, provided in a partnership between Barclays, Pan Africa Life and MicroEnsure, is meant to support retrenched staff who hold an account with the bank.

The three-month salary will be equal to their last net pay.

“Cases of retrenched employees left struggling to make ends meet as they seek alternative sources of income are common. The salary retrenchment cover is, therefore, meant to ensure that the family needs are met even as the bread-winner seeks alternative income generating opportunities,” Barclays Bank consumer banking director Zahid Mustafa said during the launch of the insurance product Wednesday.

VALUE-ADDED PRODUCT

The cover is a free value addition product meant to attract more employees to process their salaries through the bank.

Customers who have voluntarily resigned, accepted retrenchment or with lapsed contracts, retirees and those dismissed due to fraud, dishonesty or any illegal conduct are not covered in the insurance plan.

The launch comes as financial institutions feel the pressure to improve their quality of service, reduce costs of doing business and increase profits by diversifying revenue streams.