United Insurance S.C. (UNIC) after securing an approval from the National Bank of Ethiopia (NBE) started rendering a Funeral Insurance Cover.

According to Zafu Eyesusework, board member of UNIC, the company’s service is one for the first time that distinguishes funeral insurance form accident insurance cover which is being practiced now.

The new service will allow the company to provide from 10,000 Birr to 30,000 Birr as an insurance cover for funeral costs.

Nonetheless, according to Fortune, the cover will include grandparents, grandchildren, brothers, sisters, uncles and aunt.

Commenting on this Deputy General Manager of Life and Medexin at the company, Azaleche Yirgu noted the UNIC will only cover the funeral cost of the client’s family that live with him. She furthered the service will only be rendered for clients living in Addis Ababa.

The insurance service has some similarities with Idir, an Ethiopian traditional association established among neighbors or workers for the purpose of raising funds for emergencies.

For a client to benefit from UNIC’s new service, he should buy a policy separate for all members of the family. After wards, the client is expected to pay annual premium ranging from 30 Birr for babies to 500 for old aged people.

According to Azaleche, UNIC will make the payment in 12 to 48 hours of the client’s death or his families. She furthered, “Our major market targets are adults who reside at condominiums and apartment. Other targeted groups are civil servants who do not have an exposure to social life and Idir, she added.

Fortune noted, UNIC expects 827,655 Birr profit in the first year of the implementation, 230, 264 Birr the following and 5.2 Million Birr on the third year of commencing the service.

UNIC hired three more employees for the purpose of the new service, Azalech said.

Source: Fortune