Insurer woos jua kali workers

An insurance company has partnered with a jua kali association to run a funeral cover which will ease the cost of burial for low-income Kenyans.

APA Insurance will provide a cover — Heshima Mpango Poa — which will provide cash benefits after a family member dies.

Speaking during the launch in Nairobi, APA chief executive Simon Clayton said that the partnership was necessary in order to sell the product to consumers who are often discouraged by high cover premiums.

“Even the micro-insurance products currently in the market are inaccessible. The process a client has to undergo before receiving a cover is not inviting because of lengthy paperwork. We have avoided that,” he said.

To benefit, consumers will register for the cover using their mobile money platforms — Mpesa, Airtel Money and Orange Money — where they will receive a policy number and the annual premiums.

From an annual remittance of Sh350, beneficiaries of a departed member will receive payment of Sh25,000 and Sh100, 000 for annual premiums of Sh1,400. The claims will be settled within 48 hours of reporting death.

Kenya National Jua Kali Cooperative Society chief executive, Mr Dominic Muindi has rallied jua kali members to take advantage of the opportunity to insurer themselves and their family.

“The days of fund-raising during funerals are over. I am urging all of you to take this cover and reduce the burden of mortuary fees and buying caskets,” he said.

According to Mr Clayton, micro-insurance is a major platform for increasing insurance penetration, and APA will continue rolling out these products as they consolidate the existing ones for effective services.

With about eight million members in the jua kali association, the move may accelerate insurance uptake in the country.

The total cover in Kenya stands at 3.1 per cent of the country’s GDP. Between 2007 and 2011, premiums in the sector grew from Sh41.7 billion to Sh79.1 billion, with an average annual growth of 16.8 per cent.