Nigeria’s NDIC advocates ‘Pass-Through Insurance’ to mobile money subscribers

Wednesday, December 10, 2014

One of the issues discussed at the just concluded Nigeria Deposit Insurance Corporation (NDIC) three-day workshop for business editors and members of the Finance Correspondents Association of Nigeria (FICAN) in Katsina State is extension of deposit insurance to mobile money subscribers via Pass-Through Insurance (PTI).

In order to engender confidence of the public in subscribing the products of mobile money operators, the NDIC has considered as imperative the extension of deposit insurance of the MMOs in the form of pass-through deposit insurance, Umaru Ibrahim, managing director/CEO of NDIC, said.

According to him, the framework for making the pass-through insurance scheme operational is currently being finalised by the Corporation.

The pass-through insurance implies that the MMO pool account would not just be regarded as single accounts, but that the benefits of the deposit insurance will be enjoyed by the individual subscribers of the MMO pool account.

Looking at the advantages of pass-through insurance, Kingsley Nwaigwe, deputy director, research, policy and international relations department, NDIC, said each customer of the mobile money scheme as a subscriber to the MMO pool account would be covered to the insured maximum amount for deposit money banks.

Source: Business Day (link opens in a new window)

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financial inclusion, financial innovation, mobile money