The new insurance cover will be provided in a partnership between BBK, Pan Africa Life and MicroEnsure.
The cover is aimed at supporting retrenched account holders whose salaries are processed via the bank for a period of three months, with monthly monetary payment equal to their net salary. This comes at no extra cost to the account holder.
“With the current dynamic business environment, long-term formal employment in Kenya is not guaranteed. Cases of retrenched employees left struggling to make ends meet as they seek alternative sources of income are common. The Salary Retrenchment Cover is therefore meant to ensure that the family needs are met even as the bread-winner seeks alternative income generating opportunities,” BBK’s Consumer Banking Director, Zahid Mustafa said.
The insurance will cover customers that have been subjected to implementation of a staff reduction program, adverse business conditions, introduction of new technology rendering them redundant, resulting in the insured member not earning any income for a continued unemployment period of at least 30 days.
The cover will however exclude customers who have voluntarily resigned, accepted voluntary retrenchment or with a lapsed contract, retirees and those dismissed due to fraud, dishonesty or any illegal conduct.
The solution also comes with a death benefit of Sh100,000 payable to the designated beneficiary upon the unfortunate death of the account holder.
“Financial institutions today are under pressure to improve their quality of service, while also reducing costs to remain competitive in an extremely volatile and uncertain market. Customers are increasingly expecting more convenience, accessibility, personalization and reliability,” Zahid noted.