Little Ethiopia has partnered with Lion Insurance to launch a digital insurance product for the ride-hailing sector, covering up to one million birr. Passengers will pay an extra 15 birr per trip for insurance. This product aims to enhance safety and financial protection, reflecting an emerging trend in financial services tailored for ride-hailing drivers.
Little Ethiopia, in collaboration with Lion Insurance, has launched a pioneering digital insurance product tailored for the ride-hailing industry, which provides coverage for drivers and passengers with claims up to one million birr. This innovative product was formally introduced on Tuesday at the Skylight Hotel, with passengers incurring an additional premium of 15 birr per trip.
Abraham Mersha, the CEO of Lion Insurance, highlighted this offering as a transformative development for the ride-hailing sector, emphasizing Little’s suitability as a partner due to its substantial corporate clientele. Each passenger will receive a unique ID number that tracks trip details, which is essential for processing insurance claims following an accident.
The maximum payout of one million birr is designated for cases of death occurring during a trip. In comparison, Little’s operations in Kenya, where they provide similar insurance, cover total and permanent disabilities and hospitalization expenses incurred due to accidents, in addition to ambulance reimbursements and cash payouts for hospital admissions.
Despite significant growth in Ethiopia’s financial sector, insurance penetration remains low, with under 1% of the population currently insured. Little’s new service complements existing third-party insurance mandated for ride-hailing drivers while aiming to diversify Ethiopia’s insurance offerings.
Recent trends indicate that financial services catering to the ride-hailing industry are on the rise. Other companies, such as ZayRide and Wez, have cooperated with Awash Bank to offer life insurance for drivers, while Enat Bank provides various credit services, including tax payment loans. Little Ethiopia’s alliance with Bank of Abyssinia also facilitates collateral-free loans for drivers.
Berhane Assefa, Corporate Manager of Little Ethiopia, believes that the new insurance feature will enhance the company’s appeal to corporate clients. He remarked on Ethiopia’s delay in adopting such services, stating, “The service is common in several countries; Ethiopia is just late to the party.”
A new icon will be incorporated into the Little application, enabling the activation of the insurance service. Additionally, Nyawira Maina, Regional Manager of Little App, asserted that the partnership is more than just an insurance service; it aims to assure passengers’ peace of mind.
Having expanded from Kenya into Uganda, Tanzania, and Zambia, Little Ethiopia aims to integrate this service into its comprehensive super app, which currently offers bill payments, food delivery, and other functionalities. The company is approaching its third anniversary of operations in Ethiopia as it continually evolves its service portfolio.
The partnership between Little Ethiopia and Lion Insurance marks a significant advancement in the ride-hailing industry’s approach to passenger safety and insurance coverage in Ethiopia. This new insurance product not only provides essential financial protection for users but also reflects a growing trend in financial services designed specifically for this sector. As Ethiopia continues to develop its insurance industry, initiatives like this are crucial for enhancing coverage diversity and increasing market penetration.
Original Source: shega.co
