Tuesday, November 5, 2013

MTN, Mansard change industry paradigm with Mobile Insurance Cover

In a unique fashion that is bound to kick-start mobile insurance in Nigeria, MTN and Mansard Insurance has launched a unique mobile based insurance cover for the mobile network’s subscribers in Nigeria. The product MTN Y’ello Cover, is described as a highly affordable, airtime-based life insurance service offered to MTN subscribers, in collaboration with Mansard Insurance plc, is a simple and convenient way subscribers can access an affordable life protection plan directly from their mobile phones.
For just N15 daily, subscribers can enjoy a N350, 000 life insurance cover. The policy covers medical expenses incurred in case of accidents and also pays benefits, in the case of accidents resulting in permanent disability or demise.
Speaking at the launch of the service, Chief Enterprise Solutions Officer, MTN Nigeria, Babatunde Osho, said “This service would help make insurance available and accessible to a vast portion of the Nigerian uninsured population. Interestingly, this initiative would eliminate the seeming complexities and paperwork often associated with insurance and make it attractive and convenient for Nigerians.”
Osho further added that this innovation is coming on the heels of MTN’s mission of providing tailor-made solutions that meet the everyday needs of its teeming subscribers thus enriching the quality of lives of Nigerians.
With MTN’s subscriber base in the excess of 20million in Nigeria, the acceptance of the MTN Y’ello Cover especially among majority of Nigerians with huge apathy towards insurance cover, a remarkable revolution that’ll bring affordable insurance to the mobile phones of Nigerians is imminent.
On his part, the Assistant General Manager, Marketing, Mansard Insurance Plc, Taiwo Adeleye, said “Life insurance is not the exclusive reserve of the rich or the educated, insisting that  everybody should have insurance. “The importance of having insurance cover cannot be over-emphasized and what our partnership with MTN has done is to enable Nigerians access this really affordable platform with convenience and ease, he stated.”
PRODUCT DYNAMICS
o   Customer eligibility: MTN subscribers between 18 – 60 years
o   Only registered MTN phone numbers are eligible
o   No registration fee
o   Premium shall be paid through Airtime billing
o   No opt out fee
o   Subscriber policy would be effected once a subscriber has registered for the cover and paid the first premium
o   Subscriber forfeits cover when he ports to another network
o   Only claims arising from an accident are payable within the first 30 days
o   Only claims that occur between 12:00am and 11:59pm of the subsequent day of billing would be covered and deemed payable by the insurer
o   The policy ceases once a demise or total permanent disability claim is paid
o   Claims notification must be done within 30 days of the scheme member’s demise/permanent disability.
o   There will be an initial waiting period of 30 days after subscription, to qualify for benefits of total permanent disability or demise caused by natural causes (i.e. this refers to the first 30 days of enrolment into the scheme during which benefit will be payable in case of demise resulting from accident only. No cover for demise/total permanent disability resulting from natural causes is given during the first 30 days).
o   Next of Kin/Beneficiary can be changed only once in 30days
o   In case an individual registers more than one line, the maximum cover shall be two times the specified sum assured for a maximum of two lines. However, the beneficiary maybe the same person for the two lines.
o   The subscriber must have sufficient credit balance. Where the subscribers credit balance is insufficient, the subscriber is notified of suspension of cover and will be asked to top-up the line in order to be covered again
o   If there is no sufficient credit balance on the customer line for 30 consecutive days, the subscriber will be automatically opted out of the service
o   A policy holder has the sole obligation to inform his beneficiary or legal adviser of his policy
o   Subscribers must accept these Terms and Conditions of the product prior to subscription
o   Where the subscriber’s credit balance is insufficient, the system will retry to deduct the charge from a customer credit balance once a day
o   Where a subscriber completes the registration for the insurance cover, a policy number will be sent to the subscriber by SMS. Access to the customer portal will also be available to a subscriber to update subscription details & print policy certificate
o   Subscribers can cancel their micro-insurance plan at any time

o   Responsibility lies with the subscriber in the event of phone misuse or fraudulent activity from the subscriber’s MSISDN with respect to the micro-insurance service

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