DAR ES SALAAM: CRDB Bank, one of the leading lenders in the country, has introduced motorcycle taxi insurance that is payable in instalments of 1,000/- a day for three months.
The lender termed the insurance scheme ‘Bima Buku’, targets the motorcycle taxi ‘bodaboda’ and rickshaw (bajaj) and has the option of health insurance as well.
Kinondoni District Commissioner Mr Saad Mtambule said when launching the Bima Buku yesterday before about 5,000 bodaboda and bajaj riders that one of the reasons that many riders shun covering their property is the high costs of insurance premiums.
“Bima Buku has come timely in addressing this challenge of costs that keep insurance products at bay for many bodaboda riders,” Mr Mtambule said.
The DC noted that data show that the insurance penetration is still low, hailing the bank for venturing and introducing not only affordable but also easy payment methods—by small instalments.
Additionally, he called on other stakeholders, particularly banks, to continue educating society members on the importance of covering their properties to increase the insurance penetration in the country.
According to Tanzania Insurance Sector Market Report 2023 issued in May, overall insurance saturation which includes public and private insurance as a percentage of GDP was approximately 1.68 per cent in 2021.
The ratio slightly increased compared to a penetration ratio of 1.55 per cent in 2020 and 1.58per cent in 2019.
In 2021, there were six million Tanzanians who used insurance services nationwide out of a total population of about 60 million.
The CRDB Chief Commercial Officer (CCO) Mr Boma Raballa, said Bima Buku enables the owner of a bodaboda or bajaj to not only cover his/her property but also for his health starting from 1,000/- paid daily.
“The payment duration of the insurance is 86 days and enjoys a full year cover. for both motor and health cover one is required to pay for 11 months or 333 days,” he said.
However, according to the lender, the insurance is applicable after starting paying the instalments if the bodaboda or bajaj is involved in an accident though the payment for the instalment will continue until the stated period is over.
“Normally,” The CCO said, “insurances are paid once but what we have introduced is a new scheme that enables these small entrepreneurs to pay for the same insurance in daily instalments.”
In the market, for instance, health insurance starts from 192,000/- payable once but CRDB introduced an easier way of paying in instalments of three months.
“By having this insurance, the customer guarantees treatment in any government hospital in the country in the event of an accident or when falling ill suddenly,” Mr Raballa said.
CRDB Head of Bancassurance Ms Moureen Majaliwa said they have three years’ experience in the insurance business which warrants the accumulation of knowledge of coming up with new market-based innovations.
“Along with this insurance product that is easy and affordable for all, we have also relaxed the terms and conditions of loans for motorcycles and bajaj to enable us to venture into this business,” said Ms Majaliwa.
