Life Insurance Zong Insurance, virtue for the users or Cheap Marketing in Pakistan

Recently a subsidiary of China Mobile in Pakistan called China Mobile Pakistan (CMPak) has introduced a typical form of accidental insurance to the users of their product Zong® cellular service. The insurance is launched in collaboration with Adamjee Life Assurance Company Pakistan. It is said that users can get their accidental insurance in daily charges Rs: 2, 4 and 5 against the sum assured Rs: 100,000, 200,000 and 300,000 respectively. Following terms and conditions have been advertised for the information.

• To purchase the insurance policy the customer should be 18-59 years of age with a valid CNIC.
• To receive the benefits of the insurance policy the customer should be 18-60 years of age.
• One beneficiary who be at least 18 years of age with a valid CNIC.
• The ZONG mobile connection should be in the name & CNIC of the policy purchaser.
• Validity of the Insurance policy is for 1 year.
• Insurance premium (deducted on a daily basis) is non-refundable
• Tax is applicable on telecom services only.
• By subscribing to Zong Insurance service, the customer entitles Zong to share the personal information of the customer and his/her beneficiary with Adamjee Life Assurance Company.

The sound is seemed a revolution in insurance industry in whole world, but will it be the milestone for the rest of world? This question is naturally buzzing in the mind. So before the understanding this strange insurance we must look over all glance of the teledensity in Pakistan.

According to the recent report which shows the teledensity in Pakistan the trend of mobile users is growing in daily basis. In the fiscal year 2010-11 the report shows that the teledensity in Pakistan is reached 69% in the current year and cellular users are now 108.9 million from the total population 180 million. And cellular operator wise the following data has been produced:

1. Mobilink             (3,33,78,000 users)
2. Telenor              (2,66,67,000 users)
3. Ufone                (2,05,33,000 users)
4. Warid                (1,73,87,000 users)
5. Zong                 (1,09,27,000 users)

This report is issued by the competent authority. But ground reality differ the situation. It doesn’t mean that every second person of Pakistan is using mobile, but it is well noticeable that more than 80% users have multiple connections and time to time they switch over the services from one network to another one. Moreover, day by day the cheap marketing methodologies of the advertisements by the above companies have also created a rough competition scenario in Pakistan mobile networks.

Another bitter truth is more than 60% of mobile users have don’t sufficient knowing about the proper usage of the mobile even. They make a call, receive a call and text messaging. Recently a survey was conducted by a newspaper in which it had shocked to the readers when the result shown. In the result it was explore that 95% text messages in the mobiles are forwarded. Just only 5% messages were shown that these messages were typed by the users.

In this culture Zong is introducing the accidental insurance to their users. Now look the subscription of the Zong users, it is lower subscription in the Pakistan, where users don’t care about the insurance but the cheap call rates and fascination SMS packages.

If this sort of insurance is seemed good then it is better to initiate by the Pakistan Telecommunication Authority (PTA) rather than a mobile operator. Then may be the aim will be furnished.