Agents challenge Centenary Bank on new insurance policy
Centenary Bank agents say it is unfair to deduct 10 percent from their commissions to meet the requirement of the Agent Banking Insurance Scheme. Photo / Edgar R Batte
What you need to know:
- In a June 12 notice titled “Introduction of the Agent Banking Insurance Scheme”, Centenary Bank informed agents that they would, beginning October 31, be required to have an insurance cover
Agents under the Centenary agent banking system have challenged a new policy that requires them to take a mandatory insurance policy.
In a June 12, notice titled “Introduction of the Agent Banking Insurance Scheme”, Centenary Bank informed agents that they would, beginning October 31, be required to have an insurance cover written by Jubilee Allianz.
The cover, which applies to banking agents, Centenary says, seeks to protect agents and customers in case of attack.
Mr Matia Kasule, the MFUKO Agent Banking Association chairperson, told journalists that after receiving the notice, they met Centenary and Jubilee officials to iron out their dissatisfaction but did not reach a positive conclusion.
“The bank informed agents that they are going to deduct 10 percent insurance cover starting [October 31] which they did and shall [do in the] preceding months. This is unfair, as insurance is optional, and also some agents already have insurance some were else,” he said, noting that they have since met the bank officials to negotiate for fair terms, but their views have been rejected.
He also argued that it was unfair for the bank to charge premiums on commissions instead of working capital, and that the policy was implemented without proper consultation and sensitisation.
However, Ms Beatrice Lugalambi, the Centenary Bank head of corporate affairs, said yesterday they have been in touch with aggrieved agents, noting that they were organising a dialogue to explain the importance of the policy.
“We do not refuse [agents from taking] insurance with any other company. All we are saying is they present to us the certificate and we are good to go,” she said, noting that the policy seeks to protect agents and customers in case of loss of money and other forms of attack.
Mr Ronal Ssekyanzi, a member of MFUKO said, banking agents countrywide conduct 75 percent of commercial bank operations and contribute Shs5b monthly to the economy, noting that they have also been key in reducing customer queues, especially in Centenary Bank.
