Staff Writer
MTC and Momentum Metropolitan Namibia are working together on the newly launched credit life cover for the giant telecommunications’ post-paid customers.
Momentum Metropolitan Namibia will underwrite the insurance policy.
The cover will be offered at MTC Mobile Homes countrywide, and customers who want to opt into the MTC credit life insurance cover need to make a once-off payment – which is calculated based on the customers’ contract duration and their contract device cost.
The policy cover known as the MTC Credit Life is meant to pay off a borrower’s outstanding debts in the event of death.
The credit life insurance benefit will be paid to the credit provider upon the death of a life insured who enjoys cover in terms of this policy. The benefits are paid when the insurer receives satisfactory documentary evidence that the life assured has passed.
For example, if a customer has an outstanding contract term of 18 months, with a device value of N$4000, the once-off payment required to initiate the cover would be N$39. The once-off payment will thus differ from customer to customer based on the customer’s contract terms.
The applicant will be covered under this policy upon acceptance or renewal of a post-paid contract package, which includes a mobile device, airtime consumption, and bundled data services given by MTC.
Any MTC Postpaid/Contract Subscriber between the age of 18 and 75 are entitled to cover in terms of this proposal provided they are a permanent resident in Namibia or is/will be a resident for a period not less than 12 months.
A Life Assured may take out multiple MTC Credit Life policies over a maximum contract term(s) of 36 months, provided that the combined value of the initial/outstanding loan amounts on all contracts does not exceed N$250 000.
Should a Subscriber be absent from Namibia for more than 12 consecutive months, the cover that such a subscriber would have been entitled to in terms of this proposal shall be forfeited.
MTC managing director Dr Licky Erastus said that as the loan balance is paid off over time, the credit life insurance policy’s value drops proportionately until both approach zero.
Explaining the rationale behind the move, Dr Erastus highlighted that MTC continuously strives for excellence as a national asset.
This requires MTC to look beyond its traditional scope as a Mobile Network Operator (MNO) and transition to a leading digital service solutions provider (DSSP) with innovation at its core.
“Innovations should not only imply or be limited to the manufacturing capital and technology but must cut across all service points. To innovate means that ideas must be aligned to research ideas that can contribute to a sustainable business – and we believe this is one form of such,” Erastus.
Added Erastus, the benefits of the MTC Credit Life Insurance offering are that “in the first instance it will provide peace of mind for family, by reducing worry and stress, ultimately the primary objective is to protect your family from being stuck with unpaid loan payments in the case of your death. This is especially critical to safeguard them, protect them, and shield them from unpaid debts.” Commenting on the strategic partnership, Group Chief Executive Officer of Momentum Metropolitan Namibia, Sakaria Nghikembua, stated that the group’s objective is to ensure financial inclusion for every Namibian, adding that the partnership with MTC provides the opportunity to do so.
“We are particularly pleased to partner with a reputable company such as MTC to deliver financial services to the broader Namibian population, thereby achieving the twin objectives of financial inclusion and economic growth for Namibians,” Nghikembua added.
