There are currently 18 insurance companies in Ethiopia and have a written gross premium of 11.1 billion Birr in the last financial year. Even though their premium production more than doubled over in the bottom half of the last decade, only a few have managed to come up with new products.
Nyala Insurance wants to buck the trend. The firm, which grossed a profit of 149.3 million Birr in the last fiscal year, has launched Ethiopia's first mobile device insurance product, called ለ-Mobiሌ.
"After conducting a rigorous feasibility study towards assessing the applicability and viability of the proposed insurance product, we have decided to pioneer such a product that is unique to the Ethiopian insurance market," said Tegegn Masresha, Executive Officer, Marketing & Business Development of Nyala, during the launching ceremony held at Capital Hotel and Spa on Thursday, March 11, 2021.
Why is the insurance product designed?
Created in a collaboration with ethio telecom and SZM Engineering plc, the new product is designed to protect the mobile phones of policyholders against any unfortunate circumstances, including accidental damage. It also gives coverage if the mobile phones of customers stolen or lost.
Nyala is to provide coverage for screen damage, theft, or any other related reasons.
"The policy is systematically designed to effectively meet the growing needs and demands of those who want to protect and insure their smartphone apparatuses against losses, damages, breakdowns, and thefts.
Who is eligible to buy the insurance?
Anyone possessing a smartphone is eligible to buy the product. But that is only possible if their apparatus is registered by ethio telecom and available in its database through its media platform.
The registration will enable Nyala to auto-detect the status of various components of the policyholder's smartphone. It will also allow the firm to get a complete report about the health of the apparatus during registration.
How much does the policy cost?
One birr and 50 cents are enough to buy the product. It is even a mere one birr if the customer picks the cheapest package and customers can make a premium payment using airtime.
"Any smartphone users can enter into a contract with Nyala Insurance just by sending an “Ok” text message via 813 at their disposal," the Firm said.
Looking for another option, users can also buy the product from the mobile app and website of Nyala. By doing so, they can view their transaction history and read terms and conditions.
How to claim compensation?
The claim process is self-administered. If an accident happens, users have three options to claim compensation.
The first option is to directly claim through Nyala’s mobile insurance website, the second is on Nyala Partners mobile vending & repair up stores and the third alternative is to just call Nyala Call Centers, according to the Firm.
"Depending on their choice, customers can also get a replacement for a stolen or damaged smartphone (same model) without having to downgrade to a lesser or advanced model," it said.