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Mortgage borrowers to get cover against layoffs

Discussion in 'Biashara, Uchumi na Ujasiriamali' started by MaxShimba, Oct 1, 2009.

  1. MaxShimba

    MaxShimba JF-Expert Member

    Oct 1, 2009
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    Mortgage borrowers to get cover against layoffs

    S&L managing director Caroline Kariuki. Photo/MICHAEL MUTE
    By NATION ReporterPosted Thursday, October 1 2009 at 15:34

    For the first time in Kenya, mortgage borrowers will now be covered against retrenchment and social risks, following a partnership deal signed between UAP Insurance and mortgage company S&L on Thursday.

    The insurance cover is designed to protect mortgage borrowers against layoffs, malicious damage, civil unrest, terrorism and sabotage

    Home owners

    S&L, KCB’s mortgage subsidiary, said that the enhanced home owners comprehensive insurance policy will be available to all mortgage and business customers at KCB, up to a maximum value of Sh300 million per property. New customers will automatically get the cover.

    Initially, mortgage protection insurance only repaid mortgage in the event that a customer died.


    “However, the reality is that today we are faced with the risk of losing one’s job through involuntary retrenchment,” said S&L’s managing director, Ms Caroline Kariuki.

    “This has led to employed persons shying away from taking mortgages, especially in light of the difficult economic realities of our time, when companies are retrenching their staff.”

    UAP Insurance managing director, Mr James Wambugu, said there is growing demand for mortgage financing, which has lead to rise in demand for insurance against economic uncertainty.