![[Kenya] Octagon Africa and AAR insurance launch medical cover for pensioners](AAR.jpg)
[Kenya] Octagon Africa and AAR insurance launch medical cover for pensioners
Pension service provider Octagon Africa and AAR Insurance have unveiled a post retirement medical cover allowing pensioners pay for healthcare after retirement.
Dubbed Afya Plus Post-Retirement Medical Cover, the product has been designed in a way that during employment part of the pension contribution is collected and saved in a fund to pay for insurance premiums.
Traditionally, medical underwriters have not been giving cover to individuals above the age of 60 years but the new product will insure individuals from 50 years up to 80 years.
“You no longer have to worry about healthcare during retirement as Afya Plus seeks to ensure you enjoy retirement blissfully,” said AAR Insurance managing director Caroline Munene.
Retirement Benefits Authority (RBA) chief executive Edward Odundo said the regulator was aware of the challenges in the sector and the RBA would work to strengthen the management of the retirement benefits schemes.
“I want to assure you that we shall do anything within our mandate to protect the interests of our members and sponsors of retirement benefit schemes in order to develop and grow the industry,” said Dr Odundo.
Octagon chief executive Fred Waswa said the introduction of regulations on post-retirement medical scheme was a step in the right direction.
“However, more needs to be done to encourage employers to mandatorily augment member’s additional contributions so as to ensure adequacy of the medical savings,” he said.
Last year, the Treasury amended the law to allow workers to start saving for medical insurance cover upon retirement through their employee-backed pension schemes.
This was a major step forward since healthcare expenses remain one of the biggest headaches for households in the country.
