NMB, firms partner to drive insurance penetration in Tanzania
Dar es Salaam. NMB Bank Plc – through its bancassurance product - has partnered with Metropolitan Life Tanzania and Sanlam Life to launch two new insurance products.
The move is intended to raise insurance penetration in Tanzania, which currently stands at about 0.6 percent. The Tanzania Insurance Regulatory Authority (Tira) wants to raise penetration to five percent by 2030.
The NMB Bank Plc’s head of bancassurance, Martine Massawe, named the insurance products – which are being introduced under the partnership - as ‘Faraja Life Insurance’ and ‘Group Insurance Scheme.’
Under the arrangements, NMB and Sanlam introduced an improved Faraja Insurance product so that it now covers all the funeral expenses of the policy holder.
The amount for condolence to be given in case of death has been raised from Sh1 million to Sh2 million. “The improved Faraja Insurance covers all costs in the case of death or permanent disability of a policy holder or his/her spouse,” Sanlam Life General Manager (Corporate Business), Nura Masoud, said.
A person only needs to be an NMB account holder to benefit from Faraja Insurance, covering the costs for funeral services and costs of permanent disabilities.
In the same vein, NMB - in collaboration with Metropolitan Life Tanzania Insurance - has introduced Group Insurance for formal and informal groups such as WhatsApp groups, Village Community Banks (Vicoba), clan or family groups.
When a member of the group dies, the new insurance product covers all funeral costs. The benefit may also be extended to at least four family members of a policyholder, including the spouse and children.
The Metropolitan Life Tanzania Insurance, Chief Executive Officer, Amani Boma said with the new arrangement, more people were set to be reached through the widest bank’s branch network.
“This new group insurance cover will definitely reduce the burden of making contributions in case of death of a member, wife or child by covering all the funeral services costs,” he said.
