Liberty Life Assurance has partnered with Equity Bank and Turaco Insurance Brokers Limited to introduce a new insurance product that will see members reimbursed with cash for every night spent in hospital.
Named Equi-life, the product is designed to enhance the financial security of Uganda's impoverished and underprivileged population but also to address the stark reality that only 1% of Ugandans have formal insurance, according to an FSD Uganda 2018 report.
According to officials, the new product which goes for only shs3000 per month, a member gets shs50,000 per day or night spent in hospital with up to 20 days covered.
In case of death, the next of kin of a member is given shs3 million to cater for burial expenses.
Liberty Life Assurance Uganda's Managing Director, Joseph Almeida, emphasised the company's commitment to inclusivity.
"Equi-Life, in conjunction with Equity and Turaco, provides genuine alleviation, enabling families to concentrate on their recovery rather than their financial obligations. We are happy to under-write this solution in partnership with Equity Bank,” Almeida said.
Equity Bank Uganda's Managing Director, Gift Shoko said the insurance product is part of their efforts to serve the underserved.
" Equi-Life has therefore been established with the objective of increasing the penetration of insurance among Uganda's underprivileged population, making our partnership a lifeline for the omuntu wawansi, for whom medical access is a matter of life and death."
The partners emphasised that Equi-Life is a life changing solution that makes the difference amongst the under-served ensuring that they are not overwhelmed by medical costs in a country where 50% experience health shocks annually and only 1.4% are insured, according to the Vision Fund Uganda 2022 report.
James Sserumaga, the Head of Bancassurance at Equity Bank Uganda said the partnership leverages Equity Bank’s robust liquidity and regional asset base to bridge the gap between the current 0.8% insurance penetration, as per the annual IRA 2022 report.
"Equi-Life revolutionises the insurance industry in Uganda. We are reducing financial setbacks by developing a product that is user-friendly, accessible, and designed for the average Ugandan, as 40% of Ugandans sell assets to pay for medical expenses (FSD Uganda) and 68% of rural Ugandans who lack hospital access within 5 km (UBOS, 2021),” Sserumaga said.
According to Hamza Mutebi, General Manager of Turaco Insurance Brokers Uganda, only 1% of Ugandans have insurance, while 80% are unable to finance medical care.
“This partnership transforms financial protection from a privilege to a right, allowing the underserved to access insurance,” he said.