Star Microinsurance has paid an amount of GH¢42,166.67 to Amantin and Kasei Community Bank as part of its rural and community bank loan protection scheme.
This scheme is an innovative product designed by Star Microinsurance in collaboration with ARB Apex Bank to help the rural banks mitigate some of the risk associated with credit delivery.
One Bismark Ome who is a prominent customer of Amantin and Kasei Rural Bank acquired a loan facility from the bank.
.The loan facility of GHC 50,000 and was to be repaid over a twelve month period with interest.
As at the time of Mr. Ome's demise, the facility had only been serviced for two months, leaving an outstanding balance of GHC 41,666.67.
Fortunately the community bank has been registered under the Rural and Community Bank Loan protection scheme.
Upon contacting Star Microinsurance, proof of the incident was requested for.
The rural bank submitted a report from the credit department, a burial permit and medical certificate indicating the cause of death.
After verifying these documents, Star Microinsurance paid an amount of GH¢42,166.67 (outstanding balance plus 1 month interest and funeral donation) to Amantin and Kasei Community Bank.
This total included a funeral donation of GHC 500 which is to be presented to the bereaved family as compensation for their loss.
Star Microinsurance recommended that all loan-granting institutions take such innovative policies to protect both the clients and institutions from such circumstances beyond our control.