Bank of Kenya (BBK) has launched the Salary Retrenchment Cover, the first product in the market of its kind for customers who have their salaries processed by the bank to cushion them from a disrupted lifestyle in case of sudden job loss.
The new insurance cover, provided in a partnership between BBK, Pan Africa Life and MicroEnsure, will support 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,” said BBK’s Consumer Banking Director Zahid Mustafa. “Cases of retrenched employees left struggling to make ends meet as they seek alternative sources of income are common.”
The Salary Retrenchment Cover is meant to ensure that the family needs are met even as the bread-winner seeks alternative income generating opportunities. The insurance will cover customers that have been subjected to implementation of a staff reduction programme, adverse business conditions, introduction of new technology rendering them redundant, resulting in the insured member not earning any income for 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.
The launch of the product is part of the bank’s three year corporate strategy heavily anchored on the roll-out of innovative technology-based solutions, which will see the bank enhance its operational efficiencies to not only guarantee better performance and shareholder return, but also enhance the customer experience.
“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, personalisation and reliability. At Barclays, we aim to deliver this by leveraging our innovative technologies and strategic partnerships for the personalized experience that every customer yearns for,” noted Zahid.
