In pursuit of their strategic aspiration to expand customer base and boost growth, Nib Insurance Share Company and its sister company Nib International Bank signed a tripartite agreement with Gasha Commission Agent PLC to launch a premium financing scheme for code 1 and 3 public transport service provider vehicle owners.
The agreement aims at availing a loan fund for the payment of insurance premium so that the vehicle owners buy motor and life insurance policies with a very convenient, simple and affordable premium payment plan through saving 30 to 40 Birr in a day.
More than 2000 public transport provider vehicle owners will be beneficiaries once the service is launched. The service will also incorporate vehicle owners across regional cities, according to Genene Ruga, President of Nib International Bank.
The new service will ease the challenges of the vehicle owners to get an access to insurance premiums, says Abel Hailemariam, General Manager of Gasha Commission Agent PLC.
Abel’s company is expected to garner 6.5 percent commission payments annually for facilitating the service.
Meanwhile, Zufan Abebe, CEO of Nib Insurance Share Company, said for her part that the premium financing scheme will support the financial inclusion promoted by the government as it gives access to finance for those vehicle owners who have no money readily available to cover their annual insurance premium and encourages saving which otherwise is more likely to be expensed for daily consumption or other transactions of non-value adding nature.
Nib Insurance S.C has 45 full-fledged branches and 5 contact offices across Ethiopia. Its paid up capital has reached 500 million Birr from 14 million in 2002.
As compared to the Gross Domestic Product (GDP), insurance premiums coverage in Ethiopia is very low; it is now at a rate of 0.5 percent.