POS Operation Gets Insurance Cover as Industry Expand

0

CEM REPORT | The Mobile Money and Bank Agents popularly known as POS operators have got an insurance product developed to cover the risks in their operations.

The product, developed by YOA Insurance Brokers was presented at a symposium organized by the Lagos Chapter of the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) held Thursday at the LCCI Events Center, Alausa, Lagos.

The Head of Business Development of YOA Insurance Brokers, Oduayo Osinubi who presented the product, explained to Continental Economy Magazine (CEM) that following Data from Central Bank of Nigeria, the Mobile Money and Bank agency industry is expanding at an alarming rate. As the number of agents increase, their risk they face in their daily operations increase proportionately.

Oduayo Osinubi, Head, Business Development, YOA Insurance Brokers,

“As the number is increasing, so is the risk because though we see them as genuine business individuals, some other are looking them as an opportunity to get money and they are ready to steal, rob, maim or even kill without any regard;” Osinubi said.

Having an insurance cover for this segment of the financial industry has been a difficult task as many Insurance Companies never showed willingness or able to develop products to cover them due to the nature of the business. An agent who fell victim to armed robbery attack told CEM that she approached had earlier approached several Insurance Companies for cover and she was turned down by all of them.

[READ ALSO] AMMBAN Bracing Up to Regulate POS Operations

Osinubi said YOA saw the growing risks as a major challenge for the industry and decided to find a solution by designing a product suitable for the nature of the business for which they were lucky to find an Insurance Company that is ready to work with them.

The product designed by YOA covers the major areas of risks in the business which are money insurance, fidelity guaranty, personal accident and asset risks for the POS.

Osinubi explained further on the product, he said;

“The first cover is money, we need to protect the money that is moving back and forth. Our product is design to cover your money in the case of theft. We cover the cash in transit, cash in personal custody, cash in safe and the physical safe. That helps the company keep itself afloat.

“The second cover is fidelity guaranty which covers the dishonest act of staff, though this is a little being technical because you need to be able to prove that the staff took the money and not that you gave them the money.

“Thirdly, we also cover the machine itself because that is the source of the business itself. On the average, an operator has two machines and so we allow cover for two machines for accidental damage

“The fourth one is personal cover for injury. The policy gives a certain limit for medical expenses in the case of personal injury from accident. We also cover in the case of death.”

According to Osinubi, YOA is an innovative company that has been in business since 1992 primarily in the oil and gas before it expanded to manufacturing. This recent move is a major launch into the retail industry within which they wish to exhibit a level of control. .

According to Osinubi, this project is really an important one for the retail end of the financial industry across the entire country. The project has been under development since last year working with AMMBAN, and trying to understand what their needs are. Those products are based on the needs as discovered.

While he admitted there would be challenges since the product is pretty new, he expressed determination as experienced Broker to rise to the challenge at both end of the divide.

“We understand that for any new idea, there would be teething problems. We as brokers are ready to assist at both end of the divide; on the side of the customers, the AMMBAN members and on the side of the Insurance Company.

“We are going to make sure that the proper investigations are carried out in the events of claims and if the risk are genuine, we will make sure they pay the claim”; Osinubi said

0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments