Group Life insurance is a benefit offered by an employer or an aggregator of diverse segments of the population for reasons other than insurance (like an association or labour organization) to its workers or members. Such organizations are called the sponsor of the group life scheme. Group life insurance is typically offered as part of employee / membership benefit package.

Ideally the cover will cost each individual worker or member much less than if they had to purchase an individual policy. Those receiving coverage do not have to pay anything “out of pocket” for the Group Life policy benefits if the employer or the group to which they belong provides this as a benefit. However, members of the group or employees may pay directly through salary or annual subscriptions if the employer or the group plays the role of a facilitator only. Usually a minimum number of employees or members are prescribed for the team to qualify as a group for the purpose of taking a group life cover.

What is covered under the Group life policy have?

a. Death Benefits:

This benefit is payable on death from illness (natural causes) or accidental. The amount payable, called the sum assured, is either a fixed sum for all members in a particular category as predetermined by the sponsor or is determined as a multiple of the annual salary as set by the sponsor. The benefit is normally paid out as a lump sum to either the sponsor or the designated beneficiaries of the deceased employee / member.

b. Last expense:

This is normally taken as an additional benefit to help facilitate the disposal of the mortal remains of the deceased member. The benefit amount ranges between Kshs. 30,000 and Kshs. 200,000/- either as a separate cover or as acceleration (advance payment) of part of the full death benefit described above. Customarily, this benefit is paid within 48hours of receipt of written notification of the death.

c. Credit Life Assurance& Sacco loan protection:

Group life plans are also used to provide cover to redeem the outstanding loan balances in the event of premature death or disability of the borrower. This cover can be renewed every year (annually renewable) or provided at the onset of the loan agreement for the entire term of the loan (single premium option). All lenders with a minimum of 10 borrowers including financial institutions and Sacco’s qualify for this cover.

d. Mortgage Protection:

Group life schemes offer mortgage protection arranged on a yearly renewable or single premium basis for lenders to specifically protect the families of the deceased mortgagor from the risk of the lender reselling their home in the event of the untimely death or disability of the breadwinner. This cover provides the same benefit as for credit life.

This is a life insurance policy designed to pay, for a borrower, the remaining principal balance, assuming the borrower had made all the due installments.

The policy applies in cases of death, disability, or even loss of employment of the borrower of a lending institution during the term of their loan.

Lending institutions include banks, microfinance, and Saccos.

What is the purpose of Credit Life Insurance?

The cover is meant to protect the lending institution against risk of unexpected death, disability or even loss of employment of a borrower. This ensures that the lending institution gets paid.

What are the benefits of Credit Life Insurance?

• Protects the lending institution against risk of losing money.
• The family of the deceased also gets to keep the asset/property that was financed by the borrowed funds even after the death of the borrower.
• Removes the strain of repaying loans by the families of the departed member.
• Provides a more economical coverage because of mass purchase and group discounting.
• Premium is lower than individual insurance.

This policy covers loss or damage to the motorcycle and its accessories, including legal liability to third parties and passengers in respect of death or bodily injury arising from the use of the motorcycle for social, domestic, and pleasure purposes.

The range of cover is the same for private i.e comprehensive, Third party Only and Third-party fire and theft.

Theft cover for accessories and spare parts is excluded unless the motorcycle is stolen.