UAP Old Mutual Insurance has announced the introduction of monthly payments for comprehensive car insurance as one of the ways to drive insurance uptake in the country.
Nancy Ashaba, the Underwriting Manager at UAP Old Mutual Insurance Uganda said the move is aimed at easing uptake of comprehensive insurance which was sen by many as being expensive and for corporates.
“The monthly payment plan is expected to create better customer experience and satisfaction. Historically, insurance has been perceived as a costly and intangible product, only beneficial in uncertain circumstances. However, with our innovative monthly installment plan, comprehensive insurance becomes more accessible and affordable,” Ashaba said.
“Customers can now enjoy better benefits and peace of mind, by paying for their comprehensive insurance in manageable monthly instalments, aligning with their budget and financial preferences. This plan is designed to break down the traditional lump sum payment barrier, making comprehensive insurance more attainable for a wider range of customers.”
Whereas the third party insurance is mandatory and only covers third party liabilities following injuries or death of the insured, motor comprehensive insurance on the other side covers accidental damage to the insured vehicle, theft of the vehicle, vehicle parts and third party liabilities such as injuries and property damage.
Since motor comprehensive covers a wide range of things, it is a bit more expensive than the third party insurance and because of this, many motorists fears to take this cover .
However, according to the UAP Old Mutual underwriting manager, by allowing monthly payments, it will be easier and cheaper for motorists to pay for motor comprehensive insurance.
“The monthly payment plan is designed to be flexible and affordable, with premiums payable in monthly instalments. For example, a customer can pay shs100,355 per month instead of shs1,204,262 at once for a vehicle valued at shs24.5 million,” Ashaba said.
She said the benefits for the monthly payment plan include financial protection in case of accidents, theft, fire, and other risks, complete coverage and peace of mind, flexible and affordable payments, and access to comprehensive insurance for a wider range of customers.
The introduction of the monthly payment plan is part of UAP Old Mutual Insurance Uganda’s strategy to expand its offerings and meet the changing needs of vehicle owners in Uganda.
“We believe that our innovative monthly payment plan will make motor comprehensive insurance more accessible and affordable, providing financial protection and peace of mind for a wider range of customers. We are committed to leveraging technology to improve efficiency and enhance customer experience, and this payment plan is just the beginning.”
She explained that with this new innovation, UAP Old Mutual customers can easily can have a peace of mind for their valuable investments.
“With motor comprehensive insurance, one is shielded from financial loss in the event of theft, damage or destruction of the vehicle, its accessories or spare parts resulting from accidents, fire, riots and other unforeseen events. It also ensures that you are covered for third party liabilities, providing compensation to others in the unfortunate event of an incident or injury caused by the owner.”
