Little Ethiopia has partnered with Lion Insurance to launch a digital insurance product for ride-hailing passengers and drivers, offering coverage up to one million birr per claim. The initiative introduces a new premium structure for passengers and aims to enhance safety within the sector, complemented by a unique ID system for claims processing.
Little Ethiopia has forged a significant partnership with Lion Insurance to introduce a new digital insurance product aimed at enhancing safety for both passengers and drivers within the ride-hailing industry. This initiative, unveiled at the Skylight Hotel, offers insurance coverage of up to one million birr in claims, necessitating an additional charge of 15 birr per ride for passengers.
Abraham Mersha, the CEO of Lion Insurance, described the collaboration as transformative for the ride-hailing sector, emphasizing Little Ethiopia’s suitability as a partner due to its strong corporate clientele. Each passenger will receive a unique ID number that records trip specifics for seamless insurance processing and claim settlements in the event of an accident.
The insurance coverage provides a maximum payout of one million birr in the case of death during a ride. Similarly, in Kenya, where Little Ethiopia operates, riders are afforded comprehensive protection, including coverage for total disability, hospitalization, and death from accidents, as well as ambulance service reimbursements and hospital cash payouts.
Despite the trajectory of growth in Ethiopia’s financial sector, the insurance coverage remains low, with under 1% of the population insured, predominantly focusing on motor and maritime policies. Little’s product serves as an enhancement to the mandatory third-party insurance required for ride-hailing drivers.
Since 2022, the emergence of financial services targeting the ride-hailing industry has gained traction, with offerings ranging from vehicle loans for prospective drivers to specialized financial products for current ones. Previous initiatives included life insurance offerings from ZayRide in collaboration with Awash Bank, compensating drivers’ families posthumously.
Little Ethiopia’s Corporate Manager, Berhane Assefa, anticipates that the insurance feature will augment the company’s appeal, capitalizing on their substantial base of corporate clients. He remarked that similar services are common internationally, suggesting that Ethiopia is catching up with global trends.
A new icon will be integrated into the Little application to facilitate activation of the insurance service, echoing practices from international competitors such as Uber. Nyawira Maina, the Regional Manager for Little App, highlighted that the partnership not only introduces insurance but also offers invaluable peace of mind to passengers and hinted at future service advancements inspired by the Little Super App in Kenya. Little Ethiopia, which has been operational for nearly three years, continues to expand its offerings across the region.
In conclusion, the partnership between Little Ethiopia and Lion Insurance marks a pivotal advance in enhancing ride-hailing safety through digital insurance solutions. With a premium structure that integrates seamlessly with existing services, this initiative aims to address current gaps in Ethiopia’s insurance landscape. As the industry evolves, it promises to deliver valuable protections for both passengers and drivers, setting a precedent for future services in the sector.
Original Source: shega.co
