Posts Tagged 'Cover2go'

Accident Insurance by Text Message

I came across Cover2go’s South African micro-insurance product this afternoon after seeing the write-up at textually.org. The summary:

One SMS to 38858 gives you instant accidental death cover – no visits to brokers, no medical tests, and no forms. A once-off charge of R 10 [US$1.43], from your airtime, gives you a full 30 day accidental death cover to the value of R 15 000 [US$2,143].

This is not life insurance and only covers accidents, but it appears to be offered at a reasonable rate through an incredibly low cost distribution channel.

From the write-up:

“Every day, a large majority of South Africans have to board minibus taxis, many of which are notoriously unsafe. For people travelling over the most dangerous periods such as the Easter weekend, the risk to the wellbeing of their families is very real – 276 people died this past Easter holiday. Unfortunately, the common perception is that life assurance is a luxury that’s unaffordable and complicated to obtain. With Cover2go, people can get basic cover instantly, at very affordable prices, when they need it most,” says Derek Pead, CEO of Cover2go, a division of Metropolitan Life.

This is the process of signing up:

  1. SMS your name and date of birth (ddmmyyyy) to 38858
  2. You will then get an SMS back with your policy number
  3. Tell the beneficiary who will receive the money in the case of your accidental death that you have the policy. Cover2go will pay out a claim to beneficiaries in the following order: your spouse or life partner, your children, your parents, or your Estate. At claims stage we will ensure that the correct person gets the money. It’s best to let the beneficiary know that you have the policy, so that they know to contact us to claim.
  4. Also tell them about the Claim Line: 0860 COVER2GO (0860 2683 7246)

The product is being offered by Metropolitan. The company description from Hoovers:

Metropolitan takes a decidedly national approach to insurance and financial services. Born in 1898, the company is one of the largest financial services conglomerates in South Africa serving the lower- and middle-income markets. Metropolitan provides life insurance to some 4.3 million residents, making it the country’s fourth largest life insurer. Its life products are distributed directly and through preferred intermediaries, direct marketing, brokers, and via voluntary group schemes. Metropolitan additionally offers retirement fund benefits, acts as asset manager, and supplies medical aid and managed health-care administration.

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