DRAFT- PROPOSAL DOCUMENT

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CONFIDENTIAL!

RAMOGI BENEVOLENT FUND

(A SCHEME THAT PAY A PORTION OF THE FUNERAL EXPENSES OF ELIGIBLE INDIVIDUALS): BACKGROUND It is in line with our African tradition (LUO KITGI GI TIMBEGI) to give a decent send off to our departed friends, relatives and kinsmen (and kinswomen). In many communities in Africa, the onus of a decent burial to the dead is a communal responsibility and cannot be left to the immediate family alone. We, members of Ramogi Syokimau Association, it is upon us, as well, to give our departed members a decent burial befitting their status. May those who have left us Rest in Peace! It is also true that economic times are hard hitting now. The cost of living has sky-rocketed. To hire a hearse to transport a body from Nairobi to Western Kenya will currently require an amount of monies that is beyond the reach of many families. Relatives, clan members, friends and well wishers may come to help, but with this hard and uncertain economic time, it can prove to be a great challenge to the immediate bereaved family; and any delay in the necessary burial arrangements only adds to the overall cost, and aggravates the already stressful situation. Some of the key cost factors in bereavement and burial arrangements which we identified include (but not limited to) the following: Transportation/hearse Mortuary Casket Cemetery plot Headstone/Wreathes Funeral Service Visitation and Viewing Church Minister

Additional costs that are often associated with the death of an individual may include: o Legal Fees o Food expenses o Communications o Debts

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Hospital Bills Pay off debts like mortgage, and credit cards Legal/cultural costs at death Obituary notices in Newspaper & Radio announcement

All these, if left to one family alone, and if help does not come from wellwishers and/or structured groups like Ramogi Welfare, can put any bereaved family under a lot of financial and emotional stress and agony. WELFARE MEASURE It has been a responsibility of the Welfare to support the member families upon bereavement, and to raise monies to defray (part of) funeral expenses. In an effort to mitigate the effect of death in light of the rising cost of funerals, Ramogi Syokimau Welfare Association members make monthly contributions, to meet expenses upon bereavement of a member, or dependant, as declared by the member. However, bereavements can occur at a time when any of the members is not in a position to contribute the agreed amount, for whatever reason. In the recent past, the Welfare has taken the initiative and contacted about 2 or 3 insurance companies, to give proposals on a policy that could cushion the members when and if a bereavement befalls one of us. Through a resolution passed on 21/3/2010 during its monthly meeting, it was unanimously agreed after lengthy deliberations that instead of the welfare placing this scheme with an external body i.e. an insurance company, we adopt a pilot scheme to retain the fund within our investment circles so as to achieve an additional twin benefit of generating more funds for the investment wing of Ramogi Syokimau. The proposed rules and regulations to govern this fund are as stated below. RULES & REGULATIONS a) The Scheme shall be called Ramogi Benevolent Fund (RBF). b) The fund management should be notified as soon as possible when the member or covered dependant dies. c) The fund shall pay a lump sum death benefit of kshs. 50,000 on death of a member or his/her dependant within 3 working days of the reported occurrence. d) That the premium payable per head per year is proposed to be Kenya shillings six hundred (Kshs. 600.00) only. e) Only members of the scheme shall be eligible for compensation.

f) All dependants must be declared upon membership. g) The effective date of the scheme shall be six months after payment of the FIRST premium. h) A member who wishes to withdraw shall not ask for refund of his/her premiums. Premiums are not refundable. i) There shall be updating and confirmation of members details and dependants, annually, so as to remove or add names of new members or of those who may have withdrawn from the scheme. j) The scheme shall be managed by Ramogi Investment Scheme Committee who shall be required to give a full financial report after every six months to the welfare. k) Any profits earned from the scheme shall be for the benefit of the members of the Investment Scheme as a group. l) Whereas the management of this scheme shall rest with the investment wing of Ramogi welfare, the overall supervisory authority shall rest with the CHAIRMAN of the Welfare and the Executive Committee of the Welfare. EXCLUSION CLAUSE a) Dependant above the age of 25 years. b) More than one House Help per family unit. c) Double claims. d) Parents of the principal member. e) Suicidal death. ANTICIPATION We anticipate having an operational Minimum number of thirty (30) family units with an average of 5 members for each unit. At a proposed yearly premium of ksh600/=, we anticipate to have at an average of KSh. 3000/= per family unit per year.

EXPECTED BENEFITS OF THIS SCHEME i. ii. The bereaved eligible claimant will receive a lump sum 50,000/= Kenya shillings as benevolent payment towards defraying funeral expenses of the deceased person. The unclaimed fund will not be sunk, but will still be available for the benefit of the overall Ramogi Investment activities.

iii. iv. v. vi. vii.

There will be no exclusion for active principal members above age of 60 years; which is not the case with insurance companies. It is convenient. The burden of proof in a claim will be lesser compared to the external insurers. This is due to our common social inter-relation which is the foundation of our Welfare. Claim processing will be faster (within 3 working days). There are no hidden clauses. Ramogi Welfare members have a high stake and may, through a resolution, cause a desirable variation in the policy implementation.

FINAL REMARKS It is our hope that the membership of Ramogi Syokimau Welfare will discuss this proposal honestly and in an objective manner, and without fear or favor. We, the authors of this proposal, do not claim perfection to it whatsoever. We stress that, at this stage, there is every opportunity for every member, equally, to amend, delete or add to any section that does not conform to the overall desire and aspirations of the membership of Ramogi Welfare. We present the document to you, this day, with a sincere hope that you will give it a favorable consideration; and possibly grant approval for its implementation. If any one of you is in doubt, we once again refer you to the section of the expected benefits of this scheme, to form the basis for your informed consideration. Acknowledgements: This document was as a result of consultation with many of you members of Ramogi Welfare. Without giving names, we wish to acknowledge and appreciate the efforts of each one of you, who gave comments, advice and any inputs towards the making of this document. We would not be where we are today without those positive and valuable contributions you made. Lastly we thank the Chairman and entire leadership of Ramogi Welfare for their continued efforts to ensure unity and harmony among its membership; and to create an environment in which positive thinking & development can thrive. To the entire membership, this proposal is like your baby and we thank you all, most sincerely for coming up with this idea. May Almighty God Bless You, abundantly, as you deliberate on this draft proposal. We love you all. Yours faithfully, CoE. Form RB- 01/0

RAMOGI BENEVOLENT FUND

Application for membership No.___ ___

1. Principal Members Name: ____________________________________________

Member

Dependant 1:________________________ _____D.O.B___________Age_____yrs Dependant 2:________________________ _____D.O.B___________Age____ yrs Dependant 3:________________________ _____D.O.B___________Age____ yrs Dependant 4:________________________ _____D.O.B___________Age_____yrs Dependant 5:________________________ _____D.O.B___________Age____ yrs Dependant 6:________________________ _____D.O.B___________Age_____yrs 2. Total Amount of Premium payable, at Kshs. 600/= per head KSh._________________________________ 3. Members residence ___________________________________________ (indicate your area of residence) 4. Date of joining the Scheme__________________ 5. Number of dependants____________________ 6. Signature_______________________ Identity Card No: __________________ Date: ___________________ 7. Declaration: I declare that the above information is true and correct to the best of my knowledge and belief; and that I shall at all times abide by the rules governing the scheme as set out by the management committee. Signed by Principal Member:________________________ Dated:____________

RAMOGI BENEVOLENT FUND

Form RB -02/0

BURIAL CLAIM - APPLICATION FORM

ELIGIBILITY Payable when the individual who is a member of Ramogi Welfare or dependant dies while the principal member is in active membership of the Welfare. APPLICATION PROCESS Member or assigned makes application for the fund by completing this form and submitting it along with death notification to the fund coordinator. AMOUNT OF AWARD, Ksh ________________________ 1. 2. 3. Name of Deceased____________________________________________________ Date of Death___________________ Place of Death_______________________ Was the principal member an active member of Ramogi Welfare at the time of the reported death? ____________________ (this section is critical)

4. Name of Principal (paying) member:____________________________________ Relationship with the Deceased:_____________________________________ Address: _________________________________Tel: No.:_________________ 5. Name of Welfare Official Responsible:___________________________________ Designation:__________________________ Signature:_______________________ Date of Claim:__________________________________________________ Official Stamp (of Welfare) NOTE: A copy of public declaration of death (death notification) must accompany this application For Official Use:

APPROVED

NOT APPROVED

SignatureDate.

RAMOGI BENEVOLENT FUND

Form RB-03/0

RECEIPT OF PAYMENT I,..

National ID card No: Tel. No: , Have received the sum of Kenya Shillings (in words); . Ksh (in Figures);.....only, being benevolent payment towards defraying funeral expenses of the deceased person named:. .. Signature of Recipient: Date. Cash / Cheque No:. Name Issuing Person:..