When thinking about risk management, legal insurance is not a policy that immediately comes to mind until something goes wrong. In this week’s article, I have a conversation with Lekhooa Montši, Head of Retail at Alliance Insurance about the importance of having legal cover.
TKay: Ntate Montši, what is your current relationship with money?
Ntate Montši: I have a healthy relationship with my money, where I use my money to take care of my health, save for retirement and do the things I enjoy such as travelling to manage my stress. I also make sure that I confront my finances and budget ahead of time to better manage my finances.
TKay: What is legal insurance and why does one need it?
Ntate Montši: Legal insurance is not very popular compared to funeral insurance. You need legal insurance because self-insurance is very expensive, for example, it is not easy for someone to have LSL40 000 saved waiting for a court case. Some Basotho, unfortunately, do not get legal representation in the courts because they cannot afford legal fees. To address this problem, Alliance Legal introduced legal insurance, where Basotho can pay affordable premiums and have peace of mind knowing that they are covered.
TKay: Does legal insurance only cover cases in court?
Ntate Montši: When we talk about legal insurance, many people only think about cases in court which is not the case. There are many other cases that need legal representation, for example, registering a trust or will and deed of sales/Sale agreed when buying sites. We often say to our clients, if you are not sure about a transaction, speak to your lawyer.
TKay: What are the benefits, advantages or associated risks?
Ntate Montši: When you speak about the benefits, the lowest premium for the family cover is LSL95 and the highest is LSL150 per month which covers any member that will need legal assistance. Where there are any disputes, the legal insurance covers that and we have resolved many disputes. The legal insurance also provides legal assistance for criminal cases and provides a bail benefit of up to LSL5 000 as a main member and spouse.
TKay: Does legal insurance cover marital cases?
Ntate Montši: Yes, the legal insurance provides covers marital cases. I must mention that Alliance Legal does not promote or advocate for broken families. It is against this background that Alliance Legal has free marriage counselling, where couples have a benefit of up to three sessions. We encourage couples to use the services, not only when there are marital problems, but also when things are going well.
You can also watch the podcast interview on Leruo TV with Ntate Montši available on YouTube – Money Adventures Podcast. To get the best comprehensive personal legal cover, speak to your insurance broker or Alliance Legal at www.alliance.co.ls for more information.
