Momentum offers early no-claim bonuses during coronavirus lockdown
Momentum Short-term Insurance (MSTI) will give clients early access to R26 million in future no claims and safety bonuses to help alleviate the financial burden of the lockdown.
The group said that clients can now opt to take an early cash benefit from their Rewarder bonus (no claims bonus). In addition, clients can also opt to cash-in early on their safety bonus. The option to take the early cashback is available to clients between April and June 2020.
This means that a combined R26 million in future bonuses that would have paid out over the next four years is available immediately to help lessen the financial burden that clients may experience, Momentum said.
“We firmly believe that, as a business and as business leaders, we have a significant role to play to assist our clients and to support the efforts of the South African government.
“The balance between flattening the pandemic spread curve and keeping the economy ticking over is challenging and we want to help where we can,” said Brand Pretorius, chief executive officer of Momentum’s short-term insurance businesses.
Pretorius said clients have the option to cash out early or wait for their normal benefit at the end of the benefit term.
“We are introducing this mechanism to support our clients during this difficult time, but we realise that not all clients would need it right now.
“We are also giving our clients another option to join us in the collective fight against the Covid-19 pandemic by donating their cash benefit to the Solidarity Fund which was established by the president earlier this week,” Pretorius said.
The Solidarity Fund will focus their efforts to combat the spread of the virus, help to track the spread, care for those who are ill and support those whose lives are disrupted.
The fund will be administered by a reputable team of people drawn from the financial institutions, accounting firms and government.
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