Underwritten by Botswana Insurance Company
Barclays Bank of Botswana (BBB) has unveiled a retrenchment insurance offering to be embedded on their lending products.
The latest development offers the bank’s customers an option of adding Retrenchment insurance cover across all their lending products to take care of customers in the event of unplanned job losses brought about by a retrenchment exercise carried out by their employers.
“When embedded on personal loans; the retrenchment insurance cover will pay off the outstanding balance of the customer’s loan in the event of a retrenchment,” reads part of a statement from the bank, which continues that when embedded on the mortgage or vehicle loan, the retrenchment insurance cover will pay the customer’s loan installment for a limited period.
BBB has also embedded retrenchment cover to the bank’s credit cards, a free benefit that does not come with additional costs to Barclays Bank Card holders.
The Retrenchment cover is underwritten by Botswana Insurance Company.
Barclays Bank of Botswana Consumer Director, Brighton Banda said the bank acknowledges that its customers may need specific protection solutions from various risks and it for this reason that they revisited their insurance offering with a view to finding solutions that will meet some of the emerging risks we see in the market.
“The provision of this insurance product helps our customers to manage their finances in the event of an unforeseen job loss and also brings us closer to our ambition of being the Financial Provider of Choice. Our customers can now obtain both a loan and a critical insurance component within our Banking halls,” said Banda.
Some of the value that the offer brings is that customers no longer have to use their separation packages to clear balances on Barclays Bank personal loans and Barclay cards, meaning the funds can be appropriated for other uses.
Going forward, customers will have a relief from paying mortgage and vehicle loan installments for a specific period while they are still finding other employment or sources of income.
Banda also explained that the Bank’s existing Mortgage and Auto Loan customers can also apply for the benefit by and further highlighted that premiums are affordable and are paid on an annual basis for mortgage loans and vehicle loans while personal loan premiums are paid once off at the time of taking the loan.
“With our Retrenchment Cover, we want to help our customers to stay financially afloat should they be retrenched from their employment, this is another way we continue to help them Prosper,’’ concluded Banda.