September 3, Kampala.
Tugende Limited announced today the launch of “Maisha Boda Insurance,” a new product to enhance personal coverage for Tugende’s customers: responsible boda boda (motorcycle taxi) drivers.
Tugende is a for-profit social enterprise offering an affordable lease-to-own model to help boda boda motorcycle taxi drivers own their own motorcycles in approximately 18 months instead of renting indefinitely. Ownership allows drivers to double their daily profits, focus more on safety and stability and invest in a future beyond motorcycles.
Maisha Boda Insurance, underwritten by insurance providers Lion and Liberty, will provide Tugende customers with up to ugx 1,000,000 in insurance coverage for life, disability, and medical coverage related to an accident. There is also coverage up to ugx 500,000 for funeral expenses and critical illness.
Maisha coverage will be included in all new Tugende leases starting from mid-August with no additional cost to customers, and extra training on the insurance and benefits will be added to Tugende’s existing training for its customers on safety, security, customer service and financial management. Over 100 drivers have already been signed up for the Maisha policy in the first two weeks.
“Tugende’s mission is to put self-employed people like boda boda drivers in control of their own financial future,” said CEO and co-founder Michael Wilkerson. “The Maisha product provides customers with more ways to protect and invest in their families and future.”
Tugende has won numerous international awards for its work with boda boda drivers. They include the prestigious Echoing Green fellowship for social entrepreneurs in 2014 and being named one of the top 3 financial inclusion startups in Africa in 2015 by the Mastercard Foundation/MIT Zambezi Prize.
Tugende has a strong safety record and says drivers on the path to ownership are more careful and think longer term, an effect that will be enhanced by greater insurance. With insurance penetration in Uganda hovering at 1% of the population, Tugende and its partners hope insurance coverage will also continue to bring formal financial services to low income individuals.
“We believe that simple and easy to access insurance-packages are the way to go in the inclusion of all Boda Boda riders in financial sector,” said Godfrey Buyondo, Technical Manager for Operations at Lion Insurance.
“I would like thank the management of Tugende Limited for partnering with Lion and Liberty Life …and further like to commend Tugende on their continuous drive in offering Boda Boda riders with financial solutions that meet their today needs,” Buyondo added.
Miriam Ndozireho, Business Development Manager at Liberty Life said her company “commends Tugende for appreciating our role as an insurer to provide long term safety solution to the lives of members and their motorcycles.”
“We therefore encourage others Boda-Boda associations across the country to emulate this example and also urge individual Boda-Boda riders to join Tugende to enjoy these benefits that come with enrolling as a member.”