SINK FUND COVER IN CASE OF DEATH
This is an insurance scheme to safeguard against loss of members funds in case of death
All members contribute kshs 300/- every month
The SACCO pays the insurance premiums from members contributions.
The insurance scheme covers the following;
- Member - Burial expenses (Kshs 130,000/-)
- Deceased member’s loans
- Deceased members deposits
- Beneficiaries of the member (spouse, children & parents)
Benefits in case of loss of a beneficiary
- Spouse - Kshs 70,000/-
- Child - Kshs 70,000/-
- Parent - Kshs 30,000/- (biological parents only)
All claims must be submitted within 6 months from the date of loss
Children are covered from 1 month old to 24 years
Parents : maximum covered age is 90 years (for claims covering the period up to 31/12/2023)
Members are required to update their details & dependants details before the date of loss.
Requirements when Claiming
- Request letter from the next of kin (claimant)
- ID copy of the next of kin
- Employer’s death confirmation letter for principal / letter from Chief in case of spouse, child, or parent
- Burial permit (for payment of funeral expenses)
- Death certificate (original and copy)
- Birth certificate for children
- Marriage certificate
- Deceased ID copy or surrender form
- Deceased last pay slip
- Letter of administration
- Birth certificate of the principal member in case of parent’s death
Policy Details
- The policy covers members loans and deposits upon death or in case of total permanent disability (for insured members from age of 18 to 80 years at entry)
- Sum assured for members above 75 years shall be restricted to Kshs 2 Million cumulatively.
- Loans are covered on reducing balance basis
- Deposits are covered on increasing sum basis. The sum assured is the balance as at date of loss
- Loans and deposits are covered up Kshs 20 Million without medical requirements
- Loans are covered up to Kshs 20 Million with repayment terms of up to 96 months
- Loans with repayment periods exceeding 96 months are covered under Group mortgage protection scheme
- Eligibility age limits;
- Principal member : 18 years to 80 years at cover commencement
- Spouses : 18 years to 80 years at cover commencement. Max. cover age is 85 years
- Children : 1 month old to 18 years at cover commencement. Max. cover age is 24 years for children who are schooling
Parents : Max. cover age is 85 years at cover commencement with no maximum cover age as long as the parent was declared before their 86th birthday.
Claim Servicing
- Claims must be submitted in writing not later than 6 months from the date of loss
- After notifying the insurer (as indicated above), the claimant has up to 12 months from the date of loss, to submit all the relevant claim requirements
- Fully documented claims are payable within 7 working days
- Funeral expenses are paid within 48 working hours
Claims will not be admitted by the insurer if death is caused by :
- Active risks of war i.e. civil war , riot , mutiny, insurrection, rebellion, revolution, terrorism, military or usurped power.
- Intentional self injury, suicide or the influence of alcohol or drugs not prescribed by a registered medical practitioner
- Racing, hunting or hazardous sports except mountaineering in the course of duty
- Aviation other than as a fare paying passenger travelling on a scheduled flight of a recognized airline except while in the course of duty
- Participation in any criminal act
- Pre-existing Total and Permanent Disability
- Deposits and Last Expense claims for inactive / Dormant Sacco members
- Claims on Loans, Deposits , Members and Beneficiaries not declared to the insurer as this policy.