Retail customers in the sultanate are set to benefit from the launch of Damanati, a low-cost insurance product for loans. The product was launched by the National Life & General Insurance Co (NLGIC) on Monday.
Launching the product, H E Yahya al Jabri, chairman of the Special Economic Zone Authority Duqm and the Capital Market Authority, said, "Oman's insurance industry is reporting solid growth year after year on rising insurance awareness and the availability of customised insurance products to suit specific needs."
NLGIC has floated Damanati as one such customised product, offering it to individual customers at a competitive rate that is almost 40 to 50 per cent cheaper than the current market rate. Damanati also allows for the transfer of loans from one financial institution to another, for the same amount and tenure, without any additional costs.
Sharing his vision on Damanati, NLGIC chairman Anwar Hilal Hamdoon al Jabri, said, "Damanati is an innovative low-cost insurance product aimed at benefiting society at large, particularly in view of the growing loan portfolio over the years. It is a socially responsible product."
"Damanati is an exclusive product for individuals residing in Oman and is designed to help customers with credit protection at a very low cost," said NLGIC chief executive officer S Venkatachalam, adding, "NLGIC is committed to making its insurance products more affordable to customers."
Indicatively, a 35-year-old availing of a loan amount of RO10,000 for a period of 120 months would have to pay a premium of about RO100 with Damanati, as compared with a market premium of about RO350-450, said Venkatachalam. Damanati also offers options for additional life cover for the family and a higher refund of premium on loan pre-closures.
The product also covers the outstanding loan amount in the case of death by any cause or disability of the customer, with burial expenses of RO1,000. "In order to make Damanati and its products more accessible, NLGIC has established various sales channels through brokers, the company's existing clients, and insurance desks at various client premises," added Venkatachalam.
© Muscat Daily 2014
