Little Ethiopia has partnered with Lion Insurance to provide a digital insurance product for ride-hailing services, covering claims up to one million birr. Passengers will pay an additional 15 birr per trip for this coverage, which includes unique ID numbers for claim processing. This service aims to improve safety for passengers and drivers in the Ethiopian ride-hailing market, which currently lags in insurance coverage.
Little Ethiopia and Lion Insurance have launched a groundbreaking partnership to provide insurance coverage for passengers and drivers in the ride-hailing sector, offering claims up to one million birr. This digital insurance product was revealed at Skylight Hotel, charging passengers an additional 15 birr per trip as a premium. This initiative is aimed at enhancing safety within the ride-hailing industry in Ethiopia.
CEO Abraham Mersha emphasized that Little Ethiopia was an ideal partner due to its extensive corporate clientele. Unique ID numbers will be assigned to passengers for trip details, which will facilitate claim settlements post-accident. The provision includes a maximum payout of one million birr for fatalities occurring during rides.
In Kenya, where Little Ethiopia operates similarly, the insurance covers various risks like permanent disability, hospitalization, and includes ambulance reimbursements. Currently, less than 1% of the Ethiopian population holds insurance policies, highlighting the need for more diverse offerings beyond just motor and maritime insurance, which currently dominate the market.
The trend of launching financial services for the ride-hailing sector has been gaining traction since 2022. Initiatives include vehicle loans for new drivers and tailored financial products for existing drivers. For instance, partnerships like that of ZayRide with Awash Bank deliver life insurance that compensates for a driver’s income loss in case of death.
Little’s recent collaboration with Bank of Abyssinia’s neobanking platform, Apollo, allows for collateral-free loans of up to 120,000 birr for drivers. Berhane Assefa from Little Ethiopia believes this insurance feature will enhance customer attraction and leverage their corporate clientele effectively.
With new functionalities being added to the Little App to activate insurance services, the partnership aims to offer patrons more than insurance; it provides peace of mind. Nyawira Maina, Regional Manager, draws a parallel to the evolution of service offerings in Kenya, indicating the potential for expanding services in Ethiopia as well.
The partnership between Little Ethiopia and Lion Insurance marks a transformative step for the ride-hailing industry by integrating digital insurance coverage for both passengers and drivers. This initiative not only enhances safety but also aims to broaden insurance penetration in Ethiopia, where the existing coverage is notably limited. The introduction of additional financial services and products for drivers signifies a growing trend within the sector, enhancing the overall operational model for ride-hailing companies in Ethiopia.
Original Source: shega.co
