Retailer gives free life cover
Trustco announced this week that it had entered into a tripartite agreement involving subsidiaries Trustco Mobile, Trustco Life, and Shoprite Namibia that will give rise to the provision of free life cover to customers based on their basket spend in Shoprite stores across the country.
In a statement, Trustco said the initial term of the agreement will be for a trial period of six months and if the pilot project is deemed a success by the parties, it is envisaged that the model will be deployed in further markets where the parties operate.
As a result of the successful conclusion of the deal, Trustco also announced that it had withdrawn a cautionary announcement to shareholders related to Trustco Mobile.
Conclusion of the agreement comes at a time when Trustco Mobile is embroiled in a messy court battle with Zimbabwean mobile giant, Econet after the two parties fell out of favour with each other following accusations of breach of contract. Trustco Mobile was providing a platform with which almost two million Econet customers where offered free life cover against airtime purchased. The free life cover was underwritten by Mutual and Federal.
A the time of going to press, it was not immediately clear how the free life cover for Shoprite customers will be calculated.