Fuel embedded life insurance cover launched

14Sep 2021
The Guardian Reporter
Dar es Salaam
The Guardian
Fuel embedded life insurance cover launched

FOUR players in the insurance, financial technology services and energy sectors have jointly introduced an insurance product of its kind to be offered to customers paying for fuel through payment cards.

Under the plan, customers paying for fuel (minimum of 10,000/-) at Puma energy stations will automatically receive life insurance cover from Sanlam, valid for seven days. To benefit from the life insurance cover, buyers must make payments using Selcom Pay Mastercard QR or Puma card.

“The cover aims to add value to the purchase of fuel from all Puma energy stations across the country. It will also pave the way for others in the efforts of reaching the government insurance penetration targets by 2028,” said Khamis Suleiman, chief executive officer of Sanlam Tanzania.

Speaking during the launch of the insurance scheme in Dar es Salaam yesterday he said the cover is underwritten by the insurance firm in partnership with TanManagement Insurance Brokers Limited, Selcom Tanzania, and Puma Energy.

Suleiman added: “We are translating the ministry of finance directive by action to ensure we meet the target set of having approximately 50 percent of the adult population with at least one insurance policy and increase the penetration rate to 5 percent of the GDP.”

According to him, other benefits which will be received under the scheme include poverty alleviation and creation of wealth through claims payment for those with bad fortunes.

The process flow assists clients who regularly purchase fuel at selected stations to cover themselves with life insurance whilst paying through their digital wallets, he said noting the move reduces the use of hard cash and promote overall financial inclusion.

Dominic Dhanah, Managing Director of Puma Energy Tanzania said being the leading oil marketing company and the industry leader in embracing digital solutions to its customers, the firm strives to partner with like-minded companies to create more value for its customers.

“This scheme offers our customers an added value and is keeping in line with the company’s brand purpose of ‘energizing communities’ to drive growth and prosperity,” said Dhanah.

Executive Director of Selcom Tanzania, Sameer Hirji said: “As a leader in the payment technology services, the company continues to bridge the digital divide in the market. The initiative makes use of cutting-edge technology to ensure that we achieve the goal of the insurance service reaching out to as many as possible. We bring to the table a database of customers from a micro level, which allows us to introduce our partners’ initiatives to this customer base at no extra cost.”

He said the partnership reaffirms the role that industry leaders need to play in guaranteeing social protection and improved welfare of customers, and the general public.

The partnership is targeting to issue over 6,000 insurance policies per day through this initiative, he added.

Mohammed Jaffer, Group CEO of TanManagement Insurance Brokers Limited said that plans are to extend the new insurance scheme throughout other registered fuel stations and in time also target other areas where value can be added.

He said: “Insurance has to be made part of our daily lives, whether, by direct purchase or value addition, it is one of the most basic requirements in this day and age to have at least one form of insurance and our target is to ensure we get this to Tanzanians through these innovative delivery methods of value addition.”

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