Econet Wireless has terminated its Ecolife life cover following the expiry of an agreement with partners whom the product was jointly offered.
It is estimated 1,2 million consumers had subscribed to the product.
Econet Wireless entered into a partnership with First Mutual Life and Namibian- based Trust Co in 2010 to offer the product to Econet subscribers.
Trust Co provided a software platform for the delivery of messages on life cover status for subscribers. In a statement yesterday, Econet said it would honour claims from beneficiaries still registered for the product as at midnight February 17 2012.
All Econet Wireless (Pvt) Ltd customers who were subscribed to the Ecolife product are hereby notified that the agreement between Econet and its technical partners, Trustco Mobile Pvt Ltd and First Mutual Life Assurance Company (Pvt) Ltd, has expired.
Accordingly, Econet is unable to continue to offer the Ecolife product, the company said.
To be eligible, subscribers were required to buy $3 worth of airtime and would thereafter earn more points by continually purchasing airtime.
Each subscriber was assigned a policy number. Econet Wireless chairman Tawanda Nyambirai said they had to terminate the product as the initial agreement with Trust did not permit the telecommunications company to look for another technical partner.
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There is litigation and Trust Co is saying we cant use another partner, Nyambirai said.
We are no longer going to look for another partner because we dont want any fights over this issue. He said Econet did not owe anybody money as it was offering life cover for free to its customers.
Nyambirai said it was made clear to policyholders compensation was due upon death.
