In a move to cover more people in this period of the coronavirus pandemic, 4G Capital, a financial technology credit provider has entered into a partnership with Turaco, a micro-insurance start-up to offer micro health insurance to their clients in Kenya.
The partners look to cover the large population that normally operate in the informal sector. They want to offer an insurance package to ease the burdens that most people in the sector face when they want to visit hospitals. This is expected to help many that any unprecedented financial burden will see them go into ruin.
According to Wayne Hennessy-Barrett, CEO and founder of 4G Capital, the company is looking forward to the partnership. “We are delighted to partner with Turaco to bring this most urgent health insurance to our clients in their hour of greatest need. Informal market traders are the spark needed for national economic recovery,” he said.
The cost of the policy, which will run for 12 months starts at Sh1, 000. The cover will cater for the people who are hospitalized for three consecutive nights or more as well as in the case that the person passes away. One will also be able to claim via WhatsApp or telephone and receive cash via their mobile money wallets in just 72 hours. The product is underwritten by Prudential Life Assurance Kenya Ltd. and distributed by Ellard Insurance Agency Ltd. DBA Turaco.
Amid the coronavirus pandemic, the partnership is also offering a reduction in the price of loans by 10% and the cancellation of late fees to those who are struggling to repay. According to Kenya’s Ministry of Health, almost 13% of Kenyans are unable to seek help for health care services due to lack of funds, and over 6% of households are at risk of impoverishment as a consequence of unexpected health care expenditure.