Little Ethiopia has partnered with Lion Insurance to provide a digital insurance product for passengers and drivers, offering coverage of up to one million birr. Passengers will incur an additional charge of 15 birr per trip for this insurance service, which has been introduced to enhance safety within the ride-hailing sector. This initiative represents a significant advancement in Ethiopia’s insurance market, where uptake remains low.
In a significant development for the ride-hailing industry in Ethiopia, Little Ethiopia has teamed up with Lion Insurance to launch an innovative digital insurance product. This partnership, announced at the Skylight Hotel, offers insurance coverage for passengers and drivers up to one million birr, with an additional premium of 15 birr per trip charged to passengers.
Abraham Mersha, CEO of Lion Insurance, highlighted this initiative as a transformative advancement for the industry. He emphasized Little Ethiopia’s suitability as a partner due to its substantial corporate clientele, enhancing the value of this digital insurance service.
Each passenger will receive a unique ID number that encapsulates trip details. This information will be shared with the insurer, the ride-hailing company, and the customer, facilitating efficient claims processing post-accident. In the unfortunate event of a fatality during the trip, the insurance will cover a maximum payout of one million birr.
The insurance product draws parallels with similar offerings in Kenya, where it extends protections such as coverage for total disability and accident-related hospitalization expenses. Other benefits include ambulance service reimbursements and a hospital cash payout for those admitted due to accidents during their ride.
Despite Ethiopia’s growth in the financial sector, insurance penetration remains low, with less than 1% of the population currently insured. Most of the existing coverage focuses on motor and maritime sectors. Little Ethiopia’s service complements the mandatory third-party insurance already required for drivers in the ride-hailing sector.
Since 2022, there has been a noticeable rise in financial services aimed at the ride-hailing market, with new products emerging to serve drivers, including vehicle loans and life insurance partnerships. For instance, previous collaborations have provided life compensation equating to three years of a driver’s earnings upon an unfortunate death on duty.
Little Ethiopia’s collaboration with Bank of Abyssinia’s neobanking platform, Apollo, earlier this year, resulted in collateral-free loans of up to 120,000 birr for drivers in need. Berhane Assefa, Corporate Manager of Little Ethiopia, anticipates that this new insurance feature will greatly enhance the company’s appeal, particularly among their extensive corporate client base.
The addition of a new icon within the Little application activates this insurance service, marking a significant step forward. As Nyawira Maina, Regional Manager of Little App, pointed out, this partnership serves not just as an insurance solution but also as a source of reassurance for passengers, in line with service models seen in other countries, highlighting the potential growth within the Ethiopian market.
The partnership between Little Ethiopia and Lion Insurance signifies a pioneering step in the Ethiopian ride-hailing industry’s insurance landscape. By addressing the insurance needs of both passengers and drivers, this initiative not only enhances safety measures but also reflects a growing trend towards diversified financial services in Ethiopia. Ultimately, this collaboration aims to provide peace of mind for users while encouraging broader insurance uptake in the country.
Original Source: shega.co
