By KT Reporter
Ordinary Ugandans can now benefit from hospital cash cover for each night spent in a hospital when they acquire a smartphone from M-KOPA. Through a partnership with Turaco Micro-Insurance, M-KOPA customers who purchase pay-as-you-go phones will be entitled to affordable health insurance for up to 30 days a year.
The initiative allows low-income Ugandans to access hospital cash benefits of up to Shs 750,000 per overnight admission. Brenda Nambalirwa, M-KOPA Manager, said traditional insurance policies have largely excluded low-income citizens due to high costs.
She added that this micro-insurance initiative will help ordinary Ugandans remain productive while managing everyday health challenges. Formal insurance penetration in Uganda is estimated at just 1 percent, limited by mistrust, narrow product offerings, and low public awareness.
Romeo Jjuuko, Head of Partnerships at Turaco, explained that the hospital cash product is an inpatient cover, providing benefits for each night a customer is admitted, up to 30 nights per year. He noted that conventional insurers focus on upper- and middle-class clients, leaving low-income communities underserved. Jjuuko added that micro-insurance bundled with M-KOPA phones will help increase insurance penetration and make health coverage accessible to many ordinary citizens.
To make a claim, customers can use WhatsApp to send a photo of their hospital bill and national ID to Turaco’s number. Claims are processed within 72 hours, with payments made via mobile money.
According to Nambalirwa, customers pay an initial deposit for the phone and then settle the balance on a daily pay-as-you-go basis, with daily rates ranging from Shs 1,500 to 2,500.
Insurance coverage is bundled into these payments. Customers who consistently pay at least 80 percent of installments become eligible for hospital insurance, phone screen repair, and a cash loan.
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