TANZANIA: NMB Bank has compensated 18 micro, small and medium enterprises (MSMEs) in Hanang District, Manyara Region whose businesses were devastated by disastrous mudslides last month.
The victims, whom NMB bancassurance partnered with Reliance Insurance to indemnify, had insured loans from the bank.
Their 270m/- compensation by the insurer was formally announced during the handover of the cheque for the NMB customers’ claims settlement, which the lender helped to expedite.
The Head of NMB Bancassurance, Mr Martine Massawe, said at the weekend that the financial relief provided to the 18 MSMEs customers by Reliance Insurance would not have been possible if their loans had no insurance cover.
“Business people across the board face numerous challenges and uncertainties that call for reliable indemnification mechanisms like insurance policies, which shield them against unexpected events that could jeopardise their survival and success,” he said.
He said the service also helps them to restore operations to normalcy after calamities like the unprecedented early December mudslides.
Highlighting the bank’s commitment to accelerate uptake of insurance in the country, Mr Massawe said the service does not only provide financial security against operational misfortunes and difficulties but also offers policyholders the requisite peace of mind in running their businesses.
The NMB bancassurance service principally seeks to support the prosperity of local enterprises through highly innovative solutions and contributes to the growth of the insurance sector.
For that to happen, he urged Manyara residents and all Tanzanians at large to increase uptake of the various products the bank offers and continue to creatively design and innovate.
“We offer affordable customised and tailor-made insurance products that cater for the needs of all economic segments in society, including one whose annual premium is as low as 10,000/-,” Mr Massawe said.
The lender plans another ‘Umebima’ roadshow across the country to sensitise and educate people on the importance of having insurance coverage this year.
Hanang District Commissioner Janeth Mayanja lauded NMB for its insurance uptake efforts, noting that the insurance literacy campaign was mostly needed there because of the low level of awareness of the service in the district.
She told the gathering that in ascertaining the magnitude of the disaster, they established that most of the affected entrepreneurs did not only lack insurance coverage but were also ignorant of insurance and its benefits.
“No one ever thought that our district would be hit by such a catastrophe, therefore this should serve as a wakeup call for us to embrace insurance and start utilising the various products available in the market moving forward,” Ms Mayanja stressed.
A beneficiary of the Reliance compensation, Ms Happiness Mlay, who will pocket 28.5m/- from the insurer called on the uninsured to quickly acquire coverage because it helps to minimise losses inflicted by unexpected risks.
Noting that timely claims settlement was a regulatory requirement, the Commissioner General of Tanzania Insurance Regulatory Authority (TIRA), Dr Baghayo Saqware, challenged insurers to reduce premium costs to make policy packages more enticing.
“Insurance guarantees compensation when disasters strike. Presently, various insurance services providers have come up with innovative insurance products. Let’s embrace them fully so as to minimise risks,” he explained, noting that the government was keen in ensuring insurance increases its contribution to national development efforts.
“That’s why the government is spearheading the campaign to create awareness of this vital service and emphasising health insurance for all,” he added.