Momentum Short-term Insurance (MSTI) is giving clients early access to R26 million in future no-claims and safety bonuses to assist them financially during the lockdown.
Momentum said clients can now opt to take an early cash benefit from their no-claims bonus. Clients can also opt to cash in early on their safety bonus.
The company rewards clients with a cashback safety bonus of up to 30% of their annual car and home insurance premiums.
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 reduce the financial burden that clients may experience.
“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 Momentum Short-Term Insurance CEO Brand Pretorius.
The company 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,” Pretorius said.
Momentum is also giving its clients the option to donate their cash benefit to the Solidarity Fund which was established by the President earlier this week.
The Solidarity Fund will focus its 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.
On 18 March, Momentum Metropolitan, the holding company of MSTI, committed R5 million in financial support for the government’s initiatives.
Momentum Metropolitan CEO Hillie Meyer said the public and private sector need to work together to ensure that they can achieve a health ecosystem that allows South Africans access to more health for less.
“This crisis requires us to collectively work together towards a common outcome,” he said.