Micro insurance is taking shape within small business after two multinational insurance companies last week launched a policy targeting motorcycle transporters riders involved in the boda-boda business.
Lion Assurance and Liberty Life partnered with Kampala Metropolitan Boda-Boda Association (KAMBA) an organization that brings together 42 other boda-boda associations in Kampala to launch Wekume Boda Insurance a product that helps boda-boda riders when accidents occur.
Jospeh Almeida the Managing Director of Liberty Life speaking to journalists in Kampala at the launch of the product noted that the partnership with Lion Assurance will deepen insurance in Uganda. Almeida said that the insurance product is essential to boda-boda business because it puts the riders in a position they were in before the accident occurred. “Our collaboration is a sign that partnerships are crucial in deepening insurance services in our market and will promote the growth of the industry to new heights,” he said.
At least 41,000 KAMBA members stand to benefit, initially, as the plan gets rolled out to other parts of the country.
Wekume Boda Insurance covers and provides compensation against third party risks, death, disablement, critical illness of rider caused by the accident and medical expenses.
Motorcycle related road traffic injuries in Uganda have increased due to rise in number of riders joining the boda-boda business. Most are young unemployed who often have sold their small plots of land upcountry. The number of reported motorcycle accidents, according to Uganda Police Crime and TrafficSafety Report, rose to 7,450 in 2013 up from 573 in 2005.
“We expect the number of motorcyclists to increase further over the next few years and have launched this new Insurance-Package to provide them with cover at a competitive and affordable price of as low as UShs46, 900 (about $17.1) only per year,” Newton Jazire, the Managing Director Lion Assurance said.
Source : East African Business Week