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Consumer Credit Insurance protects you, as the borrower,
in the advent of accident, sickness, involuntary unemployment,
or death. If you are unable to work due to accident,
sickness or involuntary unemployment, CCI insurance
will cover your loan repayments for a stated period
of time or until you are able to return to work. In
the advent of death, the credit contract may be repaid
in full.
The Consumer Credit Code regulates the conduct of authorised
representatives selling Consumer Credit Insurance.
Under the Credit Code;
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You cannot be forced to take out CCI insurance
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You cannot be forced to take out CCI insurance
with a particular insurer
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The maximum commission allowed to be paid by the
insurer is 20% of the gross written premium
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Details of the CCI insurance and commission are
to be disclosed on the loan contract
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A copy of the CCI policy must be provided by the
insurer within 14 days after the acceptance of the
proposal, and
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If you terminate your loan, any CCI insurance is
also automatically terminated by the lender and
a statutory amount refunded to you as a reduction
in the amount you must pay to finalise the loan.
Benefits of Consumer Credit Insurance (CCI)
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Protects your finances in the event of accident,
sickness, involuntary unemployment, or death.
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CCI can be easily financed into most loan contracts.
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A CCI policy can be tailor made to accommodate
the areas that you feel most at risk.
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Offers financial security in the event of the
unfortunate occurring.
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In the event of Death, the typical life component
will pay the outstanding balance of the credit contract
up to a specified maximum value.
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In the event of Disablement, the typical disability
component will pay the lesser of the regular monthly
loan repayment for the period of disability up to
a specified limit.
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In the event of involuntary unemployment, the
typical unemployment component will pay the lesser
of the regular monthly loan repayments for 90 days
or a designated maximum value per claim. There is
also usually a cap on the maximum benefit payable
for the entire period of the policy.
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You only pay for the portion of the cover you
use as it is automatically rebated when the loan
is repaid in full.
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