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Telkom, Old Mutual partner to provide funeral cover

By , ITWeb
South Africa , 20 Oct 2015

Telkom, Old Mutual partner to provide funeral cover

South African telecommunications services provider Telkom SA has entered into a partnership with insurance giant Old Mutual to offer funeral cover for prepaid customers.

In a statement released on Tuesday Telkom said customers on the Sim-Sonke and Telkom More prepaid plans will qualify for the R10 000 funeral cover by recharging with R100 or more airtime in one calendar month.

The loyalty funeral cover will start at the beginning of the following month and will be valid until the end of that particular month, as long as a monthly airtime spend of R100 is maintained.

"In the event that customers fall short of the R100 airtime spend for a particular calendar month, they will not be eligible for the funeral cover during the following month. Once the required spend is met again, the funeral cover will then be reinstated for the subsequent calendar month," the statement reads.

Old Mutual has developed a micro-insurance voucher system that will underpin this solution, enabling customers "to opt-in, nominate and manage a beneficiary, track their loyalty funeral cover and even submit a death claim using the Old Mutual App or USSD," Telkom adds.

Sipho Maseko, Telkom chief executive officer says the innovation is a South African first.

"While competitors may offer paid premium insurance to their customers, Telkom will be rewarding customers for their airtime spend with funeral cover at no additional cost from one of the leading insurers in the country, Old Mutual,"

Dave Macready, chief executive officer of Old Mutual South Africa said the partnership with Telkom is exemplary. "I am excited about this partnership which is a great example of the effective digitalisation of financial services. Giving South Africans easy access to insurance products through their mobile devices not only reduces cost, it accelerates financial inclusion, which is critical to reducing poverty and inequality which contributes to boosting our nation's development and future financial well being,"

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