COVID-19 : Sanlam to pay out sh475m to its clients

INSURANCE|

As the global COVID-19 pandemic continues to wreak havoc across the world, it has not only claimed over 400,000 lives but also many businesses.

Small and medium enterprises (SMEs) in particular have suffered in the process, affecting livelihoods of many families during the lockdown.

Recently, President Yoweri Museveni eased restrictions on private cars, general merchandise shops, shopping malls and public transport in the gradual process to lift the country out of the partial lockdown.

In response to the gradual re-opening of the economy, Sanlam Life Insurance Uganda Limited has earmarked sh475m to pay out to its individual life clients.

The 10% payout to each of the beneficiaries will help them to kick-start their lives following the disruptions caused by the COVID-19 pandemic.

The Sanlam acting chief executive officer, Nicholas Lutakome, while announcing the pay out in Kampala said the money will benefit over 1,000 clients who have been saving with the company for over five years in form of cash back against premiums paid on their policies.

"We cannot have a successful Sanlam in a struggling Ugandan economy and that's why we are making half a billion shillings available to some of our customers to provide hope as life returns to normal," he said.

He added; "As we grow, we also want our clients to grow and the target is to sustain their businesses." 

Some of the clients are already paid out according to Lutakome.  The payments, Lutakome said are made through mobile money.

"It is times like these that an insurance company needs to move closer to its clients to offer a helping hand towards recovery of the economy.

We want to urge the public to exercise the necessary caution to stay safe," he said.

Relatedly, the insurance company donated sh285m to the National Task Force to COVID-19 through the National Response Fund to COVID-19 to assist the health ministry in the fight against the pandemic through the purchase of protective wear such as face masks, face shields and PVC aprons for the frontline health workers.

Sanlam was launched in Uganda in 2010 after being licensed by the Insurance Regulatory Authority as a Life Insurance Company in Uganda.

Lutakome said for the last 10 years of operations in Uganda, Sanlam has grown its presence to nine regional offices across the country with a major focus on retail distribution to the mass entry level market and has built a base of over 100,000 customers.

He revealed that Sanlam is set to deliver sustainable growth across its various market segments which include retail distribution which include retail distribution, banc assurance, employee benefits and health insurance in line with the Group's vision, as the leader in wealth creation.

Insurance in Uganda has grown with over 751% in the last five years. This is according to the Insurance Regulatory Authority.