Insurance company to cover Covid-19 expenses for clients

As the coronavirus pandemic began to make itself visible in Uganda, many people started asking if insurance companies would provide cash payouts in case they fell sick.

Many companies however stated that they could not legally take care of Covid-19 because it is described as a pandemic which according to their policies they do not take care of.

One institution has however done differently and is offering cash payouts for any of their clients who might get the disease. Prudential Assurance Uganda Limited this week launched a new package which provides for their clients. One is eligible for an allowance and a cash amount for their family expenses if diagnosed with the coronavirus.

This was according to a statement by the insurance company who revealed that the innovation is centred at providing relief to the affected communities during the pandemic.

“If you are a Prudential client, and are unfortunately diagnosed with Covid-19, we will give you a cash amount to help your family manage expenses. If you are admitted to a hospital with Covid-19, we will provide an allowance. This will be at no extra cost to you,” the notice reads.

Prudential also said that the service will also apply to new clients who join before May 13.

According to Mr Arjun Malik, the chief executive officer, the company will provide a daily allowance for a hospitalised customer to ensure they can afford hospital necessities such as food but also ensure the family back at home is well taken care of.

“The Covid-19 cover is applicable to all Prudential clients with a Pru Edusave or Prudential medical card, with in-force policies (up to date premiums). New clients who join within the next 45 days, will also be covered under this scheme. Tests need to be conducted from Ministry of Health approved testing centres,’’ Malik said earlier in the week.

Prudential Uganda, he elaborated will provide customers, staff and agents with a range of additional Covid-19 insurance cover at no cost as well as waive “pandemic” exclusions written into policy language.

This means that the insurance company will now recognise and cover Covid-19 in its policies meaning if one dies from the virus, Prudential would be able to pay out claims to their family.

Prudential follows a host of different companies across different sectors such as the telecoms, banks, and others that announced packages aimed to alleviate economic pressures of the virus on society.

According to Mr Malik, the decision was taken with the intent to provide care for its clients during this difficult time.

Ms Mariam Nalunkuuma, the spokesperson Insurance Regulatory Authority, said the move by Prudential was a business decision and the regulator has no objection.

“Insurance is there to respond to people’s outcries so if Prudential has taken a decision to make that offer, I think it’s a business decision and as IRA we have no objection,” she said.

According to IRA, the move is viewed as innovative which is what the sector is striving to achieve to increase Uganda’s insured population.

Uganda currently has 44 positive cases of coronavirus.