In a market where it is mandatory for insurance premiums to be paid upfront, policyholders are often forced to forego pressing needs to meet this requirement, at the expense of immediate business needs or personal financial plans.
For business, it could be paying, rent or salaries or making orders, while individuals could be grappling with school fees or medical expenses. Paying out insurance premiums at once – which can run into hundreds of thousands depending on the policy – can upset finances and even stall business.
No more lump sum
To ease the stress of lump-sum payment, Minet Kenya has launched an insurance premium financing service that allows payment of premium in installments. Insurance Premium Financing is a short-term loan packaged to facilitate the payment of insurance premiums.
Minet Kenya Insurance Premium Financing offers a huge relief to policyholders, especially in these difficult times. Under this arrangement, Minet Kenya enters into an agreement with the underwriter and the insured and pays immediately up to 80% of the insurance premium of the insured, meaning the policyholder deposits only 20% of the premium value to have the cover activated and get insurance certificate within hours.
This product is delivered through a partnership with Momentum Credit Limited, which provides the financing. The premium insurance financing resonates well with private car owners and taxi operators, including tuk-tuk and bodaboda operators.
Under this premium financing, Momentum Credit pays the lumpsum, leaving the policyholder to pay over an agreed period of between one and 11 months.
Indeed, Minet Kenya Insurance Premium Financing is a revolutionary product that makes comprehensive insurance affordable to motor vehicle owners. “We have been thinking about our clients and the challenges they are facing as a result of the Coronavirus disease (Covid-19) pandemic,” says Minet Kenya Chief Executive Officer Sammy Muthui.
Minet Kenya Insurance Premium Financing comes at a critical time when many individuals and businesses are facing cashflow problems due to the Covid-19 effects and other economic factors, and thus offers the much-needed relief on budgets. With this service, policyholders are able to release funds to more critical operations and expenses.
This way, Minet Kenya is applying its financial expertise to ensure its customers do not have to liquidate necessary assets or spend key funds to settle premium payments.
Minet is a trusted pan-African advisor that meets the uncertainties of tomorrow by delivering risk and human capital solutions today. As the largest Aon Global Network Correspondent, Minet has access to a network of over 50,000 colleagues in 120 countries as well as proprietary data, research and analytics which enable it to manage and secure the risks of tomorrow and provide clients with an unrivaled advantage.