Tanzania: NMB introduces free funeral expense cover

Apr 08, 2011

The National Microfinance Bank (NMB) of Tanzania has introduced a new insurance product to cover funeral expenses in the event of the death of one of its customers.

It has partnered with African Life Insurance to create the NMB Faraja cover, which will be free to all active holders of the NMB Personal Accounts. The new service is in addition to the credit life insurance cover, microfinanceafrica.net reports.

"Under this scheme, we will give the spouse of our deceased Personal Account holder, who operated his/her account actively, 600,000 shillings (€275) to cater for funeral expenses," said the bank's Chief Compliance Officer Kees Verbeek during the launch.

Also speaking at the event, the Chief Executive Officer of African Life Assurance Julius Magabe said in an interview with the Daily News that there is an urgent need for more public awareness on the benefits of insurance cover.

This lack of awareness is, according to him, one of the main obstacles towards its growth. He added that, through the NMB Faraja, many customers would be reached in both urban and rural areas.