MTN and Hollard partner on vehicle insurance, DriveSure
Recently MTN and Hollard Insurance partnered to provide educational insurance calling it EduSure and catering to its clients/subscribers who need to have their educational payment systems in place. The life cover plan which is exclusive to the MTN network is based on providing education insurance for parents who would like to secure their children’s educational future in the event of death. The insurance scheme is designed to cater for current or future education costs for the children. Payments for the insurance scheme will be deducted from the registered customers mobile money account on a monthly basis.
Now MTN and Hollard have signed another partnership that stretches insurance to vehicle cover, third party cover to be specific, called DriveSure. This plan will enable MTN customers to insure their vehicles in case of theft, loss or accident, allowing them and any other third party affected to be compensated upon claim. It includes the compulsory Act cover for injuries and death and additional third party property damage
Speaking at the launch of DriveSure this morning, Hollard Insurance Zambia CEO, Mr. Paul Nkhoma, said that the product serves as confirmation that Hollard and MTN are serious about reinventing insurance in Zambia and making it more accessible for Zambians. “The launch of the new DriveSure product today confirms the ability of the Hollard/MTN partnership to reinvent the way that insurance is purchased in Zambia”.
There are a lot of vehicles being imported into the country and it is now compulsory for every vehicle to have third party cover so MTN thinks this initiative will make it more convenient for their clientele to sign up for it, in the comfort of their home (or safely parked vehicle).
MTN Zambia CEO Abdul Ismail said “We are constantly looking for ways to make life easier for our customers and this product makes the purchasing of Third Party Motor Insurance as easy as buying airtime. We believe that DriveSure will become a very prominent addition to the Zambian market.”
The product has been launched with two options. The first, providing cover for 3 months, costs K200, while the second provides cover for a full year (12 months) at a cost of K540. The policy covers the customer against:
• Third Party injury or death up to K30,100 per Person
• Third Party Injury or death up to K60,100 per Event
• Third Party property damage up to K30,000 per Event
Hollard’s role in the partnership is to be the underwriter who facilitates the policy and claims administrative duties, while MTN Zambia will be responsible for providing the platform on which insurance is bought conveniently as it has a larger base to work on.
MTN and Hollard just have to ensure that whoever is in charge of explaining the package to new clients understands what the cover includes, its minimum requirements, and also explaining the Terms and Conditions if any. It is already bad enough that the majority of uncovered people think it isn’t worth signing up for because they fear it’s expensive or only meant for people with expensive cars. The sooner we get to that level where insurance becomes a necessity more than a luxury in the eyes of people the better.
It all starts with moves like this.
