Windhoek, Sept. 15 – Driving innovation in the area of consumer convenience and peace of mind, MTC today, September 15, 2022, announced the launch of MTC Credit Life, a brand-new insurance product created to offer credit life coverage to Post-Paid clients of Mobile Telecommunications Limited Namibia (MTC).
The MTC Credit Life is a postpaid contract insurance policy that, in the event of your death, settles the remaining balance of your contract. For the duration of the contract’s remaining term, the cover settles the contract balance.
“Credit Life Insurance is a policy that is designed to pay off a borrower’s outstanding debts in the event of the borrower’s death. As the loan balance is paid off over time, the credit life insurance policy’s value drops proportionately with it, until both approach zero” states Dr Licky Erastus, MTC Managing Director.
The applicant will be covered under this policy upon acceptance or renewal of a post-paid contract package, which includes a mobile device, airtime consumption, and bundled data services given by MTC. The credit life is underwritten by Momentum Metropolitan Namibia.
The credit life insurance benefit will be paid to the credit provider upon the death of a life insured who enjoys cover in terms of this policy. The benefits are paid when the insurer receives satisfactory documentary evidence that the life assured has passed on.
The cover will be offered at MTC Mobile Homes countrywide and customers who would like to opt into the MTC credit life insurance cover will need to make a once-off payment – which is calculated based on the customers’ contract duration as well as their contract device cost. For example, if a customer has an outstanding contract term of 18 months, with a device value of N$4000, the once-off payment required to initiate the cover would be N$39. The once-off payment will thus differ from customer to customer, based on the customer’s contract terms. The credit life cover is applicable to existing, new, and renewed contracts. The benefit is paid through a claims process as soon as satisfactory documentary evidence is provided, proving that the customer has died. The cover will automatically terminate as soon as the postpaid contract duration ends or in the event of a contract being suspended due to non-payment. Further terms and conditions are listed within the MTC Credit Life terms and conditions available on MTC’s website.
Dr. Erastus outlined the rationale for the change by emphasizing MTC’s ongoing pursuit of excellence as a national asset. In order to accomplish this, MTC must look beyond its conventional remit as a Mobile Network Operator (MNO) and transform into a top supplier of digital service solutions (DSSP) with innovation at its core.
“Innovations should cross all service points and not just refer to or be restricted to manufacturing capital and technology. We believe that this is one way to develop since it requires ideas to be in line with research that might help a company be sustainable. Erastus said as much.
Erastus continued, “In the first place, it will create peace of mind for family, by decreasing concern and tension, ultimately the major purpose is to prevent your family from being trapped with outstanding loan payments in the case of your death. To preserve, protect, and shield them from outstanding debts, is very important.
Sakaria Nghikembua, group chief executive officer of Momentum Metropolitan Namibia, commented on the strategic alliance by saying that the organization’s goal is to guarantee financial inclusion for all Namibians and that the alliance with MTC offers the chance to do so. In order to achieve the twin goals of financial inclusion and economic growth for Namibians, Nghikembua continued, “We are particularly happy to be able to cooperate with a respected organization such as MTC to bring financial services to the larger Namibian community.”