Malawians struggling to afford upfront insurance payments could soon breathe easier following a move by National Bank of Malawi plc (NBM plc) to reposition and rebrand its insurance premium financing solution, NBM Smart Cover, aimed at making insurance more accessible and manageable.
Speaking during a press briefing, the bank’s Business Development Manager for Retail Banking, Chifundo Kamwinda, said the facility allows the bank to settle insurance premiums directly with insurers while customers repay the amount in flexible instalments over time.
Kamwinda explained that the solution is designed to cushion individuals and businesses from the financial strain of paying large lump sums, especially under the new requirements introduced by the Insurance Act 2024, which mandate full premium payment before insurance cover becomes effective.
The service is open to individuals, small and medium enterprises, as well as corporates, with applicants required to complete a form and declare a source of income.
Customers already financing assets with the bank can use those insured assets as security, while Premium Gold and Platinum clients can access the facility without providing additional collateral.
NBM says the facility offers flexible repayment periods ranging from three to eleven months, allowing customers to spread the cost of annual premiums into manageable payments.
Kamwinda noted that the rebranded Smart Cover product is expected to improve access to insurance by removing the burden of upfront payments, particularly in the current economic environment.
“With Smart Cover, customers can secure their assets without the strain of immediate full payment, while accessing a simple and flexible financing solution tailored to their needs,” he said.
The facility covers a wide range of assets, including motor vehicles and business property, positioning it as a practical solution for both personal and commercial insurance needs.
