SISDO launches Sh34 a day medical cover
Posted Monday, August 27 2012 at 16:40
- SISDO Health, was launched on Sunday in Eldoret
- SISDO is targeting its 16,000 members and a further 20,000 non-members in the country by the end of the year
SISDO, a micro-finance institution has rolled out a new medical insurance scheme that will offer cover to a family of five.
The cover, dubbed SISDO Health, was launched on Sunday in Eldoret. Families will now be able to contribute daily premiums of Sh34 to be insured against losses in health.
The micro-health insurance scheme, introduced by the Smallholder Irrigation Schemes Development Organization (SISDO), is targeting its 16,000 members and a further 20,000 non-members in the country by the end of the year.
According to SISDO’s chief executive, Mr Moses Banda, the scheme will leverage on money transfer platforms for receiving contributions and paying claims.
“Most of our financial transactions are done through mobile money. This is the same platform that we will use to engage our clients and other customers where they will receive their account updates on phone,” he said.
Mr Banda added that the micro-insurance product is underwritten by British American Insurance Company.
Speaking on phone, he said SISDO would provide loans to members to finance their premiums.
“A regular financial institution will ask you for collateral to provide premium financing. We are working through a membership based lending plan, where group members act as guarantors for their colleagues. This is a proven and a much easier way for the poor to access credit,” he added.
The product will provide unlimited outpatient cover, a Sh200,000 inpatient cover and Sh100,000 in case of death for funeral purposes.
Over the past few months, the market has witnessed an influx of micro-insurance products targeting the informal sector and low-income earners.
UAP Insurance has a cover called SalamaSure that insures clients for at least Sh200 on a monthly basis.
The state fund, National Health Insurance Fund, which is mandated with the responsibility of ensuring medical care to citizens, offers health cover for at least Sh160 a month.