Old Mutual Insure sets aside R60m towards premium relief for customers
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DURBAN - Old Mutual Insure has set aside R60 million towards 15 percent motor premium discounts in April 2020 and 10 percent in May 2020 for qualifying personal lines customers to manage the financial fallout of Covid-19.
Commercial and Agriculture customers who qualify will also receive a 10 percent motor premium discounts for both April 2020 and May 2020.
If Old Mutual Insure is to live its purpose of being a certain friend in uncertain times, it’s important that, "we pass the benefits of the reduced motor claims that we are seeing in hard lockdown directly to customers most impacted by this crisis," said Soul Abraham, Chief Executive Retail, Old Mutual Insure.
To ensure that Old Mutual Insure’s customer relationship partners are not negatively impacted by these premium cuts, "we are also committing to continue to calculate all partner fees as if 100 percent of the premium has been received," said Abraham.
This latest R60 million augments the following Covid-19 customer support initiatives already in place including:
1. Premium deferment, with a delayed pay-back over a set period
2. Leniency on debit orders missed due to Covid-19.
3. Reduced premiums, by allowing customers to amend cover temporarily.
4. Premium relief via iWYZE, allowing qualifying motor insurance customers a 3-month 7.5 percent premium discount.
5. Free expert review of premium relief requests across commercial, agriculture and personal lines conducted by a dedicated team of 50 ‘Help U’ employees assisting customers to maintain and manage essential and relevant covers.
6. Commitment to keep premium increases low over the next 12 months.
7. Option for customers in good standing to freeze renewals or exchange them for flexible excesses as required.
8. Three month premium discounts and excess waivers for doctors and nurses.
9. R50 million to assist SME customers and service providers.
"Old Mutual Insure remains a genuine partner in adversity, supporting customers in crisis to prosper and grow into the future by staying calm, focused and insured in the present," concluded Abraham.
Earlier this month, Old Mutual yesterday announced that it would provide R4 billion in life cover for healthcare professionals who were working on the front lines of the pandemic in South Africa.
The insurance group said the cover was free for 430000 registered health workers, and was neither a product nor a policy.
It said no premiums would be recovered on it.
Old Mutual Interim chief executive Iain Williamson said the decision was inspired by a collective call supported by Old Mutual’s 30000 employees.
The insurer said that the cover was effective from April 1 to the end of December 2020, and included a R10000 benefit that would become payable in the event of the death of a qualifying healthcare worker.