Do Citizens Have a Basic Knowledge About Ethiopian Insurance?

The renowned Ethiopian insurancecorporation has a slogan at two of its websites; "With more than thirty three years of experience". The company started functioning in the communist regimn and continued to be one of the big insurers of people, businesses and properties in country. The website is well built, if not one of a kind, and really informative. But are people buying life, non-life insurances there? Of course there are few or some that do, but i am sure the majority lives without insurance. It is not because insurance is not affordable, i say it is, the traditional practices of informal social help systems like "Eder" and "Ekub".

Eder is the social help system equivalent of "Funeral expenses cover" and "Ekub" is the equivalent of "Short term loan without interest". Living in Ethiopia i have witnessed that these social systems are helpful. But people take them too far, i suppose. If you are one of a kind that avoids such systems, you are in danger of isolation. I have always questioned if Eder is to be appreciated. I support the deceased family member should get some help go through the funeral, but have been objecting the lengthy morning days where you will just sit in a tent for about 7 days. The official days are 3 but a close family member should not be moving a lot for many days. So people who try to reject such unnecessary hurdles are greatly reproached by the elders of the community. One who has a funeral cover insurance in Ethiopia will definitely be pushed to have Eder too. I am sure the Ethiopian insurance corporation will not conduct the funeral. i the developed world there are firms that do just that. If you have a funeral cover the company will do all the requirements of the funeral.

What about motor insurance? I am not sure if these days motor insurance is a must. I have seen that the Ethiopian insurance corporation has different motor vehicle insurance covers. Ethiopia is a country with a very high incidences of motor vehicle accidents and related injuries and deaths. Motor insurance must be a mandatory. You may have heard horror stories of drivers preferring to finish off a car accident victim, just to get rid of the ongoing expenses if he/she is alive. No insurance? You gonna take care of the victim till full recovery. So i advise any motor vehicle owner in Ethiopia to have at least a third party insurance.

Why is Ethiopia with such a high incidence of motor vehicle accidents? I would rather mention something that indicates why. We all know the zebra lines (Pedestrian crossing marks) are a clear indicator that a driver should be slower and give way to pedestrians first. Don't be a fool to cross that line without vigilant care in Ethiopia, you may be killed. In the developed nations the pedestrian lines are very much respected. People just walk through the line even if a car is approaching. They know most drivers will obey the rule.

Street rules! Why don't drivers in Ethiopia respect those rules? And in a country where there is a high incidence of motor vehicle accidents why wouldn't a motor vehicle insurance be mandatory? No insurance? No car registration. So i suppose Ethiopian insurance companies are doing great effort to bring the country to a modern way of practising safegourding life and property.

The practice of informal social help systems have been so deep rooted in us as such that even the Ethiopian diaspora are affected. many Ethiopian living abroad still practice Ekub and probably Eder than have a funeral cover. Yeah, i know what you are thinking, "What about you?" I don't have any kind of insurance other than car insurance and i live in one of the most developed country. That is the reality guys.