NMB COMPENSATES 270M/- TO 18 HANANG MUDSLIDE VICTIMS

NMB Bank in partnership with its Bancassurance partner Reliance Insurance handed over a 270m/- dummy cheque that will be used to compensate 18 small and medium entrepreneurs who were affected by a mudslide in Hanang District, Manayara region that occurred on December 3, 2023 leaving many people displaced and counting losses.

The compensation is part of loan insurance, a financial product that assists with loan repayment in the event of an unforeseen occurrences.

Speaking during the handover ceremony held at Katesh Bus Stand over the weekend, the NMB Bancassurance Head Martin Massawe said his bank believes Insurance is a cornerstone of risk management for businesses adding that bank’s compensation initiative seeks to provide financial relief to the bank’s 18 customers who had initially insured their loans.

“Entrepreneurs and small business owners face numerous challenges and uncertainties. In this regard, insurance is a critical tool that can provide a safety net for businesses, shielding them from unexpected events that could otherwise jeopardise their survival and success,” he said.

Massawe noted that his bank is committed to accelerating uptake of insurance products especially at grassroots levels across the country as part of the bank’s efforts to support growth and of local businesses.

“We have today gathered at this auspicious occasion to handover 270m/- to our 18 customers who were affected by the ill-fated Hanang mudslide. The good part is that the loans they secured from the bank were initially insured. This compensation will be a big relief to receivers and I believe they will be in position to operate their businesses smoothly,” Massawe said.

Massawe urged the business community in Manyara District to subscribe to various insurance products offered by his bank so as to minimize associated risks.

“Our bank offers customized and tailor-made banking products ranging from as low as 10,000/- per annum and the procedures for enrollment have been a bit simplified to attract people right at grassroots levels,” he added.

He noted that the bank will this year embark on a nationwide insurance literacy roadshow as part of the bank’s commitment to support uptake of insurance services.

The Tanzania Insurance Regulatory Authority (TIRA) Director General (DG) Dr Baghayo Saqware during the event said the compensation payment is a regulatory requirement and thanked NMB Bank and Reliance Insurance for complying.

“Insurance guarantees compensation when disasters strike. Presently, various insurance services providers have come up with innovative insurance products. Let’s embrace them fully so as to minimize risks, he added.

Saqware commended the Sixth Phase President Dr. Samia Suluhu Hassan for spearheading the campaign on creating awareness on the role of insurance in development.

“Insurance has been an integral part of President Samia’s speeches recently with her great emphasis being health insurance for all. As an authority, we will always strive to ensure that the uptake of insurance services increases over the years and for this to be successful, that insurance service providers should be in position to offer services at affordable costs,” he added.

Earlier, the Hanang District Commissioner Janeth Mayanja said an analysis done by the district’s authorities to ascertain the magnitude of the mudslides in the district established that hundreds of Small and Medium Enterprises (SMEs) operating in the district were left devastated.

“The literacy level of insurance services in our district is still so low. No one ever thought that our district would be hit by such a disaster. This should serve as a wakeup call to all of us and we need to cultivate a culture of utilizing various insurance products available in the market moving foward,” Mayanja stressed.

Hapiness Mlay (47) a resident of Katesh Town Council who is one of the beneficiaries of the compensation said, “Am feeling so relieved after getting confirmation that I will be receiving 28.5m/ compensation. Am so happy for this new development as I have been so stressed since the disaster happened. I take this opportunity to remind fellow business community members to minimize risks through insurance subscription,” She said.