Insurance broker targets ‘machingas’ with special product

By MAJUTO OMARY

More by this Author

Dar es Salaam. Howden Puri Insurance Brokers Ltd yesterday launched a special insurance product specifically for petty-traders, alias machinga, with a view to

protecting them from risks.

Dubbed Hifadhi Biashara, the insurance allows a trader to contribute Sh7,000 per month to enable him to protect his business in the event of a fire, theft and other catastrophes. During the event, Puri CEO Umesh Puri told a press conference that with the insurance, a machinga could get a compensation of up to Sh5 million so that he can continue to do his business.

He said they had decided to come up with affordable service to enable more entrepreneurs to be insured and have hope to continue their businesses in case they faced catastrophes.

“Insurance costs are usually very expensive, causing small businesses to fail to protect themselves from various disasters.

“Having noticed this, we have decided to come up with a solution for small business owners through major technological advances to make the service more accessible in an easy fashion.”

A businessman does not need to go to the office to buy Hifadhi Biashara, but instead could easily do it using a mobile phone via TigoPesa and Selcom app through various agents in the country.

Dar es Salaam’s Petty-traders Association chairman Yusuph Namoto commended the new service, saying it was the solution to all disasters that traders were going through. “I urge all small traders to join the service,” he said, noting that it would help them when their businesses are shaken by events like Covid-19 pandemic and fire outbreaks at the Karume market.

Head of Tigo Pesa Financial Services Mshamma Mshamma assured small businesses of making and receiving payments in a smooth fashion through the best internet.

Selcom Executive Director Sameer Hirji said: “Selcom sees insurance as a necessary cog in the financial inclusion wheel.”

“We would like to play a role in not just bringing insurance products as a source of revenue for our agents but more importantly as something that they see value in subscribing to.”

For his part, Tanzania Insurance Regulatory Authority (Tira) Director General Dr Baghayo Saqware said they were pleased with Howden Puri’s strategic plan to launch the service and expand the insurance service in the country.

He said that TIRA will more closely monitor the service and other services in order to promote compliance with the law.