Barclays Bank of Kenya. [Photo/businessdaily]
In a generation where getting a job or even loosing is in no way assured, banks at the moment are presenting a few non-permanent comfort for employees who may additionally unexpectedly find themselves out of work. Banks, in a bid to diversify their revenue streams, are teaming up with insurance groups to provide clients retrenchment insurance to cushion them inside the event they lose their jobs abruptly.
Barclays Bank of Kenya is one such financial institution that has partnered with microEnsure to offer the insurance cover to customers whose salaries are wired through the financial institution, wherein if one loses their job, they may be compensated with a month-to-month monetary salary identical to their net earnings for three months.
Some experts argue this is a promotion gimmick destined to woo new clients, although they acknowledge it is an advisable venture. The lending sector is today using societal programs to attract the public to open accounts with them.
Such programmes are meant to provide relief to people who will lose jobs as well as their businesses which is developed by banks to mobilize resources from the public.
This is a way through which banks pool resources they use for lending. With the current dynamic business environment, long-term formal employment in Kenya is not guaranteed.
KCB’s cover targets account holders who may lose their jobs as a result of staff reduction programmes, adverse business conditions, the introduction of new technology, rendering their roles redundant, resulting in the insured member not earning any income for a continued unemployment period of at least 30 days.
Barclays’ cover supplements death benefit of Sh100,000, payable to the titled beneficiary upon the demise of the account holder.