Barclays launches salary retrenchment insurance cover
By Regina Manyara
Anxiety and uncertainty after job loss appears to have been addressed for Kenyans after the launch of the first ever salary retrenchment insurance cover.
The cover to be offered by Pan Africa Life and MicroEnsure to Barclays Bank of Kenya’s customers will support retrenched account holders whose salaries are processed via the bank for a period of three months.
The Salary Retrenchment Cover is arguably the first product in the market of its kind for customers who have their salaries processed by the bank to cushion them from a disrupted lifestyle in case of sudden job loss.
Barclays Bank of Kenya’s Consumer Banking Director, Zahid Mustafa says the product is especially relevant during this period owing to the current dynamic business environment where long-term formal employment in Kenya is not guaranteed.
The Salary Retrenchment Cover is meant to ensure that the family needs are met even as the bread-winner seeks alternative income generating opportunities.
The new insurance cover, provided by Barclays Bank of Kenya, Pan Africa Life and MicroEnsure will support retrenched account holders whose salaries are processed via the bank for a period of three months, with monthly monetary payment equal to their net salary at no extra cost.
However, the cover caters for customers that have been subjected to implementation of a staff reduction program, adverse business conditions, introduction of new technology rendering them redundant, resulting in the insured member not earning any income for a continued unemployment period of at least 30 days.
The cover excludes those who have voluntarily resigned, accepted voluntary retrenchment or with a lapsed contract, retirees and those dismissed due any illegal conduct.
It also has a death benefit of Ksh 100,000 payable to the designated beneficiary upon the unfortunate death of the account holder.
The launch of the product is part of the bank’s three year corporate strategy that entails rolling out innovative technology-based solutions to enhance operational efficiencies as well as improve customer experience.