Old Mutual links unit trust investment to comprehensive motor insurance

Old Mutual Investment Group Uganda (OMIG) has introduced a comprehensive motor insurance benefit for qualifying unit trust customers, in a move aimed at encouraging more Ugandans to protect their vehicles against accidents, theft, fire and other financial risks.

The initiative, introduced in partnership with Old Mutual General Insurance, allows customers investing in selected Old Mutual unit trust products to access comprehensive motor insurance as part of a broader financial protection package.

The move comes against a backdrop of low uptake of comprehensive motor insurance in Uganda, with only about 15 per cent of registered vehicles having comprehensive cover, according to the Insurance Regulatory Authority (IRA).

Andrew Makumbi, the Old Mutual General Insurance managing director, says comprehensive motor insurance should be viewed as an important part of financial planning because unexpected events involving vehicles can undermine the wealth people have worked to build.

“When something happens to that vehicle, the impact can extend well beyond replacement costs,” he says.

He adds that the low level of comprehensive insurance coverage leaves motorists exposed to significant financial shocks arising from accidents, theft, fire and damage.

“We view insurance as an essential complement to investing, not as a separate consideration, but as part of a complete financial approach,” Makumbi notes.

Under the new proposition, customers investing in Old Mutual’s money market, umbrella or balanced funds and maintaining a minimum investment of Shs 100,000 qualify for the comprehensive motor insurance benefit.

On his part, Zac Kisesi, the Old Mutual Investment Group Uganda managing director, observes that the comprehensive motor insurance benefit is part of the company’s broader strategy of linking wealth creation with wealth protection.

He says customers should not only focus on growing their money but also protecting the assets that support their daily lives and long-term financial plans. Meanwhile, Benard Obel from the Insurance Regulatory Authority (IRA) emphasizes that products that combine investment and insurance protection could help deepen financial inclusion and improve access to insurance.

The post Old Mutual links unit trust investment to comprehensive motor insurance appeared first on The Observer Media Ltd.