Terms of Reference (TOR) Group Term Life and Combined Accidental & Illness (CAI)

Background

Heifer Project International is a non-governmental development organization dedicated to ending poverty and hunger in Africa. In Ethiopia, it is re-registered with the FDRE Authority for Civil Society Organizations under certificate No. 3127 and works closely with government partners on development activities.

As part of its commitment to staff wellbeing, Heifer Ethiopia invites proposals from licensed insurance providers to offer Group Term Life Insurance and Combined Accidental & Illness (CAI) packages for its regular employees.

Insurance Overview

2.1 Term Life Insurance

Term Life Insurance is intended to provide financial security to an employee’s designated beneficiaries in the unfortunate event of the employee’s death due to natural causes or illness.

The plan should offer:

• A lump-sum death benefit equivalent to 3 years (36 months) of the employee’s gross monthly salary
• Coverage that is non-taxable to the employee and disbursed directly to the nominated beneficiary(ies).
• Immediate eligibility upon commencement of regular employment

2.2 Combined Accidental and Illness (CAI) Insurance

The CAI package is intended to supplement the Term Life coverage by providing additional protection in the event of unexpected accidents or critical health conditions. This coverage should include:

Accidental Death: A benefit payout equivalent to 3 years (36 months) of gross monthly salary in the event of death caused directly and solely by accidental means
Permanent Total or Partial Disability due to Accident: A benefit payout based on a standard disability compensation schedule (percentage payout by severity).

2.3 Eligibility and Scope

• Coverage must be provided to all regular staff of Heifer Ethiopia from their first day of employment, without waiting period
• Employees working across all locations and projects must be equally covered
  The policy should be portable within the organization, meaning that transfers between projects or locations should not affect the continuity of coverage

2.4 Optional Enhancements (Not Mandatory)

• Service providers may also offer additional features or optional riders such as:
  Funeral assistance

3. Scope of Services

• The selected insurer will provide group Term Life and CAI insurance coverage for all eligible Heifer Ethiopia employees. Key responsibilities include:
• Policy Setup: Customize and finalize benefit design and terms.
• Enrollment & Documentation: Facilitate member enrollment and issue policy certificates or digital ID cards.
• Claims Handling: Ensure clear procedures, timely claim processing, and transparent communication.
• Account Management: Assign a dedicated focal person for day-to-day servicing, changes, and renewals.
• Reporting: Submit quarterly claims/utilization reports and annual summaries.
• Support & Value-Add: Offer additional services where applicable, such as wellness tools to enhance employee awareness and experience.

Proposal evaluation focus	Percentage
Legal credentials (Renewed license, VAT registration certificate (If the company is VAT registered), TIN certificate) and Valid insurance license	Accept/Reject
At least 10 years proven experience in providing life insurance coverage services (preferably INGO or development Organization)	15%
Adequate expertise to manage the requested service	10 %
Detailed benefit structure and exclusions	15 %
Premium breakdown per employee per month	15%
Claims procedures and timelines	15%
Bank statement for three years at least 20 million turnovers	10 %
Total	80 %
Financial proposal	20 %

Required competences and experience

• A company with valid insurance license and legal credentials (renewed trade
• license, VAT registration certificate and Tin certificate)
• At least 10 years proven experience in providing life insurance coverage services (preferably INGO or development Organization)
• An insurance company with adequate expertise to manage the requested service
• An insurance company which provides quality customer service and timeliness response to our request
• An insurance company with a strong finical capability

Proposal Requirements

Proposals should include:

• Company profile and valid insurance license
• Detailed benefit structure and exclusions
• Premium breakdown per employee per month
• Claims procedures and timelines
• Implementation plan
• References from similar clients (preferably INGOs or development organizations)

Marking

• Combination of technical criteria 80% and financial proposal 20% (Weighted Average
  method)

6.Duration of the Contract agreement

• The period of the contract agreement will be for three years.

7 Time line

No.	Activity	Due Date
1	Proposal Submission Deadline	24th July, 2025
2	Selection Committee review	25th to 30th July 2025
3	Notification of award	2nd August, 2025
4	Award agreement and signing	12th August 2025

8.Bid Currency

• The applicants should submit their Price in Ethiopian Birr