In a move to address some gaps in the insurance industry, United General Insurance (UGI) and Old Mutual Malawi have come up with an initiative that caters for general insurance and life insurance.

UGI Chief Operating Officer, Macdonald Chibwe said the company believes in coming up with solutions saying the motor policy has got embedded benefits from the life section.

“What prompted us to come up with Auto360 is because we had a lot of queries and outcry from the customers of both UGI and Old Mutual, in terms of gaps that were there from our previous offering.

“So, the policy which combines motor insurance with life benefits is addressing several gaps and one of them is death of the policyholder, if one dies whilst involved in an accident, we will compensate the family,” said Chibwe.

He added that the policy comes with a free rider of a funeral insurance called Mthunzi Funeral cover.

“The policy covers vehicles which are K20 million and above, so almost everyone is qualifying,” he said.

The Chief Operating Officer further stated that it is encouraging that Malawians are embracing the policy boasting of selling K500 million in two months.

“So you can see in one month, two months, we have already sold over K500 million, so that is serious, people are jumping on this.

“If you are completely paralyzed or you are injured, you have lost part of your body, you can’t work anymore, the policy will compensate you as a policy holder, what else can you look for? Questioned Chibwe.

He added that this current embedded policy can pay up to 95 percent of any claim saying a normal policy pays up to 80 percent in the market.

“This policy has got potential for certain categories where you can self-authorize a claim, a claim of less than K4 million, you do not need to wait for rigorous processes,” he explained.

Auto360 policy was launched in December last year.