Jubilee Insurance Launches Cover for Safaricom's M-PESA Agents

Jubilee Insurance Launches Cover for Safaricom’s M-PESA Agents

Jubilee Insurance and Safaricom Ltd have teamed up to put in place an insurance cover for Safaricom's growing network of M-PESA Agents. The countrywide network covers all towns in the country. M-PESA has grown to be so dependable that you can bank or borrow money from a bank without even knowing who your Relationship/Bank Manager looks like.

The MPESA Agent business segment has been thriving over the last seven years. However, the Insurance Sector has only recently reacted in order to model insurance in-line with the Security challenges.

Kenya's security apparatus is over-stretched. The recruitment of 10,000 new policemen and women was halted by court orders, therefore, it is uncertain whether we will have sufficient numbers to adequately secure the nation by 2016. We're looking at challenges, akin to taking a pin-hole look into a raging furnace that's beginning to go awry. Recent crime reports only point to growing insecurity.

M-PESA has revolutionalised the ease with which money is transferred. No more Postal Orders, Telegrams, waiting for ATMs down-time.

Inspite of this growth in circulation of money within the economy, there has been an upsurge in crime over the years. Solutions get bandied about, here-and-there.

The Security Reports speak volumes

Source: http://mashariazgitonga.blogspot.com/2013/09/ransom-gangs-hit-nairobi-says-national.html

What are the Salient features of Jubilee's M-PESA AGENT'S Cover?

The Insurance cover is a comprehensive cover tailor-made to the business of MPESA Agents, covering losses of cash and e-money and, providing compensation for property, life and accidental medical expenses.

Benefits include:

A. Fire and Perils

Loss, destruction or damage to the property described in the schedule or any part thereof directly caused by any of the named perils.

B. Burglary & Robbery

Loss of the insured property as described in the schedule by theft accompanied by visible forcible and violent entry into or exit out of the premises containing the insured property using dangerous weapons while within M-PESA shop.

C. Fidelity Guarantee

Loss of money / e-money due to dishonesty of employees while within the shop and transit to M-PESA and from the bank.

However Robbery, Burglary, Fire and Theft by employee(s) are limited to only one incident per year.

D. Life Cover

The benefit is payable upon the demise or total permanent disability of a covered member.

E. Medical Reimbursement

Reimbursement of both inpatient and outpatient medical bills incurred for treatment of injuries arising out of an accident.

F. Last Expense

Payable within forty eight (48) hours upon notification of the demise of a covered member to cover funeral expenses.

G. Workers Injury Benefits Act (WIBA)

Covers workers against injury which happens during the course their normal of work.

The Benefits Structure is as follows:

Platinum
Benefit	Sum assured	Premium
Fire, Burglary & Robbery	Max Limit Kshs 100,000	Annual premium Kshs 4,800
Fidelity Guarantee	Max limit Kshs 50,000
Workers Injury Benefits Act (WIBA)	8 times annual salary
Death and permanent total disability	Kshs 200,000
Last expense (Agent)	Kshs 100,000
Medical Reimbursement	Max limit Kshs 50,000

Gold
Benefit	Sum assured	Premium
Fire, Burglary & Robbery	Max Limit Kshs 50,000	Annual premium Kshs 3,000
Fidelity Guarantee	Max limit Kshs 30,000
Workers Injury Benefits Act (WIBA)	8 times annual salary
Death and permanent total disability	Kshs 100,000
Last expense (Agent)	Kshs 50,000
Medical Reimbursement	Max limit Kshs 30,000

Silver
Benefit	Sum assured	Premium
Fire, Burglary & Robbery	Max Limit Kshs 30,000	Annual premium Kshs 1,800
Fidelity Guarantee	Max limit Kshs 15,000
Workers Injury Benefits Act (WIBA)	8 times annual salary
Death and permanent total disability	Kshs 50,000
Last expense (Agent)	Kshs 25,000
Medical Reimbursement	Max limit Kshs 15,000

Benefit	Sum assured	Premium
Last Expense	KShs 25,000	Annual Premium KShs 250

Non-Insurance Risk Mitigants and Deterrents

Whereas Insurance helps provide some form of compensation for loss(es) which may arise our of robberies, we believe we should also highlight some of the Deterrents, without going into details.

CCTV

The cost of CCTV has dropped significantly, making it viable for MPESA Agents. MPESA Agents and other Businesses could group themselves to host CCTV in a premises. Going forward, with anticipated improvement in the equipment Police will have, owing to Safaricom-backed security hubs, it will be very easy to digitally-track criminals any time, they appear on a networked-CCTV camera.

Armed Private Security

There is debated on having Armed Private Security Contractors, akin to South Africa. This would be a viable option for groups of Business people to organise the security of their operations. Kenya has very skilled ex-Police or Servicemen who can provide these services. 

Gun rights is a "controversial" topic but, given that being unarmed in no defense, then the next best thing would be to have "armed response".

Armed Robbery Prevention Training

This is a training video, from a developed economy, on what to do in the event of a robbery. However, given the high risk of "getting-a-good-look" at somebody when you're on the wrong business-end of his/her weapon, maybe the CCTV should handle the trick.

Community Policing

Community Policing is one way of reducing crime. Group's of Business people can employ "Security Analysts" to profile potential threats as they arise and/or evolve.

Summary

Jubilee Insurance and Safaricom deserve a bouquet of flowers for developing a product based upon the market's need and the ordinary operations of an SME operating in Kenya. The M-PESA Agent's Cover will help secure Business people's investments.

Disclaimer:
None of the Photos or Videos used are the Property of First Liberty Insurance Agency, and only uses them for "Fair Use" for Education Purposes. Some of the social views are solely those of the writer and may not be the official position of First Liberty Insurance Agency.

Please seek the advice of a licensed Independent Insurance Agent, regulated by the Insurance Regulatory Authority, before you make an important Insurance decision.