United Insurance Seals Deal, Ensures Overseas Employees
United Insurance, one of the oldest private insurance firms in the country, will be insuring a projected one million Ethiopians travelling to Middle Eastern countries for overseas employment.
The firm would earn 385 million Br to provide coverage after competing with seven other insurance firms who responded to a tender floated by the Ministry of Labor & Social Affairs on September 27, 2018.
United will be providing life insurance, which includes insuring natural death, suicide and funeral expenses of insured clients. It will also insure any physical and psychological damage suffered by employees caused by accidents, mental health or rape.
The bid announced by the Ministry set the minimum coverage of 300,000 Br for natural death and 350,000 Br for accidents.
“We didn’t offer the lowest price, but we offered the highest insurance coverage,” said an official at United Insurance, who wanted to remain anonymous. “We won, because we offered the highest coverage for individuals.”
The company offered a premium of 385 Br for each covered individual. The insured will have to buy the insurance policy at the head office of the insurer, located on Sierra Leone Street.
During the bidding process, Oromia Insurance offered the lowest premium value, but the company’s offer was rejected as the firm lacks the required 10-year experience in life insurance as set by the Ministry.