TOR: Credit Life Cover for the Sanara Program at HEVA

Objectives

• To engage 2–3 insurance providers, to provide credit life insurance cover for loans issued under this program, at a rate not exceeding 0.85% to the end participant.
• Loan Structure
• Loan Tiers
• Tier I: KES 1 – 999,000
• For businesses operating for 0–2 years.
• Tier II: KES 1,000,000 – 5,000,000
• For businesses that have graduated from Tier I or operated for more than 2 years.
• Tier III: Above KES 5,000,000
• Direct lending model for more established businesses.
• Loan Products
• Working Capital Financing
• Asset Financing
• Trade Financing
• Scope of Insurance Cover Required
• Credit life cover for borrowers under the above-mentioned tiers and categories.
• Should protect against borrower death, permanent disability, and optionally job loss.
• Coverage to match the loan term and amount.
• Cost of cover to be at or below 0.85% of the loan value.
• Flexible coverage terms across various loan products and customer profiles.

Proposal Requirements

• Interested vendors should submit a proposal that includes:
• Product details and benefits.
• Proposed rates and payment structure(Premiums must not exceed 0.85% of the loan value to the end borrower, pro-rata refunds policy etc)
• Terms and conditions of the cover(termination clause etc, dispute resolution mechanisms)
• Experience providing similar credit life cover.
• Value-added services (e.g., digital onboarding/claims, financial literacy support).
• Turnaround time for claims processing.