Loan payment protection insurance
Loan payment protection insurance
policy summary
This document provides a summary of cover only. A copy of the full terms and conditions are provided in the certificate of insurance.
1. Who underwrites this insurance?
This insurance is underwritten by Bankers Insurance Company Limited, who are authorised and regulated by the Financial Services Authority.
2. What is this insurance designed to do?
This insurance is designed to meet your needs and demands if you are a borrower who is looking to protect your monthly loan or finance payment against the risks of involuntary unemployment and incapacity (accident and sickness).
Important Note - Please read all documentation carefully as it will assist you to determine if this insurance is suitable for your needs. Furthermore, if you are accepted for cover you must review your insurance regularly to ensure it remains suitable.
3. Are you eligible for this insurance?
You can be covered under this insurance if on the start date you:
-
Are at least 18 and under 65 years of age; and
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Are permanently resident and working within the UK, Channel Islands or Isle of Man; and
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Are actively working (i.e. not off sick) when you apply and have been for at least 6 months immediately before this time.
4. What are the costs of cover?
The costs of cover are expressed as a rate per £100 of monthly benefit and include Insurance Premium Tax. They are collected monthly in advance by direct debit and the premium calculation is based upon the type of cover chosen and your current age.
Please Note - Your premium is determined at the outset and will not automatically increase as you get older.
MONTHLY PREMIUMS RATES FOR UNEMPLOYMENT AND INCAPACITY COVER |
|
AGE |
RATE PER £100
OF MONTHLY BENEFIT |
18-25 |
£2.65 |
26-30 |
£3.25 |
31-35 |
£3.85 |
36-40 |
£4.55 |
41-45 |
£5.55 |
46-50 |
£5.80 |
51-55 |
£6.50 |
56-60 |
£7.35 |
61-64 |
£8.45 |
5. Direct debit guarantee
The guarantee is offered by all banks and building societies that take part in the direct debit scheme. The efficiency and security of the scheme is monitored and protected by your own bank and building society. If the amounts to be paid or the payment dates change, you will be told of this in advance by at least 10 working days as agreed. If an error is made by Bankers Insurance Company Limited or your bank or building society, you are guaranteed a full immediate refund from your branch of the amount paid. You can cancel a direct debit at any time by writing to your bank or building society, please also send a copy of your letter to us.
6. How much can I be covered for?
The maximum claims benefit you can insure is your normal monthly loan payment, plus optional cover up to a further 25%. Please note – The total amount insured cannot be more than £1,000 or 65% of your gross monthly income whichever is the lesser.
7. When can I claim?
To qualify for claim benefits, your unemployment or incapacity must last for at least 30 consecutive days.
On the 31st day of continuous unemployment or incapacity the insurers will pay an amount equal to one monthly benefit. From the 31st day onwards the insurers will pay 1/30th of the monthly benefit for each day you remain continuously unemployed or incapacitated. Any claim benefits due to you will be paid monthly in arrears.
Claims benefits are payable for a maximum of 12 months.
8. What are the exclusions?
The following are a selection of the exclusions. For full details please refer to the certificate of insurance in the paragraphs indicated.
Incapacity (accident or sickness) benefit will not be paid as a result of:
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A pre-existing medical condition; but you will be entitled to benefit if you have not suffered from that condition for two years before the first date you became unable to work (paragraph 6.1);
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Any physical or mental condition, which you knew of or should reasonably have known about at the start date (paragraph 6.1);
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Suicide, attempted suicide or self-inflicted injuries (paragraph 6.2);
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Alcohol or drugs, unless they are prescribed for treatment (other than for addiction) by a doctor (paragraph 6.4);
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Backache and related conditions howsoever caused unless you have medical documents as evidence of a diagnosed medical condition (paragraph 6.5);
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For any period when your incapacity is not confirmed by a doctor (paragraph (6.9)
Unemployment benefit will not be paid as a result of:
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If you were not in continuous work for 6 months immediately before your employment ended (paragraph 8.1);
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Notification of pending unemployment or employment ending within the exclusion period (paragraph 8.2);
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Misconduct which contributes or leads to your dismissal (paragraph 8.6);
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Resignation, voluntary unemployment or voluntary redundancy
(paragraph 8.9); -
If you are self-employed and your business temporarily stops trading (paragraph 8.12).
9. How do I make a claim?
If you need to make a claim, you must contact us as soon as reasonably possible and at least within 30 days of the event that leads to your claim.
You should contact us at Bankers Insurance Company Limited, 117-119 Whitby Road, Slough, Berkshire, SL1 3DR or telephone 0870 024 0675.
Please fill in the claim form and return it to us and we will process your claim. We should receive the claim form within 120 days. If you do not do this, your benefit may be affected.
10. How do I cancel this insurance?
You can cancel this insurance by writing to us at any time.
If you wish to cancel this insurance within the first 30 days of the start date, or the date on which you received the schedule of insurance (whichever is the later), and have not made a claim, we will give you a full refund of any premiums you may have paid.
11. How do I make a complaint?
Although we set ourselves high standards, if we do not meet your expectations and you are dissatisfied in some way we would like to know. If you follow the guidelines below, your complaint will be dealt with in the most efficient way possible:
Step 1: Please contact or write to the Operations Director, Bankers Insurance Company Limited, 117-119 Whitby Road, Slough, Berkshire, SL1 3DR or telephone 0870 152 6000
Step 2: If you are still not satisfied with the way we have dealt with your complaint you can ask the Financial Ombudsman Service to review your case. You can contact them at the following address: South Quay Plaza, 183 Marsh Wall, London, E14 9SR, or telephone 0845 080 1800
12. Financial Services Compensation Scheme
If we are unable to meet our liabilities, you may be entitled to compensation from the Financial Services Compensation Scheme (FSCS) who can be contacted at: 7th Floor, Lloyds Chambers, Portsoken Street, London, E1 8BN. The first £2,000 of an insurance claim or policy is covered in full through the FSCS, plus 90% of the balance.
13. What happens next if I am accepted for cover?
Once Bankers Insurance Company Limited have accepted your application for cover, they will send you a schedule showing the type and level of cover selected, together with a copy of the certificate of insurance.
14. What must I do if I require further information?
If you require further information about this insurance please contact British Insurance Limited who do not offer advice, but who will provide you with a quotation for the cover you require, together with comprehensive information to allow you to make an informed decision.
The address is: PO Box 6164, Braintree, Essex, CM77 7ZW
Telephone: 08450 175 178
