This archive report was first published on 11 June 2020.
Minet Kenya has introduced a game-changing insurance premium financing solution, making it easier for individuals and businesses to pay their premiums in installments.
According to Minet Kenya Chief Executive Officer Sammy Muthui, the plan allows clients to pay a deposit equivalent to 20% of the insurance premium value to activate the cover.
"In these rapidly changing times, we have been thinking about our clients and the challenges they are facing as a result of the Coronavirus disease (Covid-19) pandemic," Muthui said, adding that the pandemic has forced many Kenyans to cut down on their household expenditures, including insurance premiums.
The insurance premium financing solution, launched in partnership with Momentum Credit Limited, aims to provide financial relief to customers as they deal with the effects of the pandemic.
"The cash-and-carry rule requires that premiums be paid upfront, but many Kenyans are not able to pay their insurance premium upfront as required by the law," Muthui noted. "This financing solution will now make it easy for them to meet this requirement."
Under the new solution, Minet will pay up to 80% of the insurance premium, allowing the insured to leverage their assets for other business-critical needs.
Payments will be spread over an agreed period of between one and 11 months, with Minet acting as the billing and collecting agent.
The insurance solution is available to both individuals and organizations, covering an annual premium range of Sh5,000 to Sh2,000,000.
Momentum Credit Chief Executive Officer Job Muriuki said the partnership with Minet ties in with Momentum Credit's vision of offering transformative solutions.
"The stress of paying premiums in lump-sum is a thing of the past, and one can pay in affordable installments over 11 months," Muriuki said. "This is a revolutionary product that makes even comprehensive insurance an affordable reality for all motor vehicle owners."
