Payment Protection Insurance (PPI)

Payment Protection Insurance (PPI) covers your outstanding loan / finance in the event of any unforeseen circumstances relating to Death due to any cause of the borrower, subject to the PPI T&C. This benefit is NOT compulsory for new loans and you do not have to apply for it if you do not want to. Your decision whether or not to take up PPI cover has no bearing on your Personal Loan / Finance application.

SCOPE OF COVER

Death BenefitIf a Protected Person dies due to sickness or accident, the Takaful Company will, upon receipt of due proof in writing of the death of the Protected Person, pay the amount of the Takaful Cover Benefit to the Bank. The Takaful Cover Benefit, at any time before the maturity date of the Personal Finance, shall be equal to 100% of the Outstanding Balance of the Personal Finance as at the date of death, according to the amortization schedule set in force on the Entry Date.

Making a claim under an existing PPI policy

If you are out of work due to illness, injury or unemployment and have a payment protection insurance policy in place, there are a number of basic steps you should follow when making a claim:

Check your policy: Check your policy document to see whether the reason you are out of work is covered under the policy. For example, if you are out of work due to an illness that is not covered by the policy, then you will be unable to make a claim. Some policies pay out if you are made redundant but on certain conditions, for example a policy may not pay out if you take voluntary redundancy.

Speak to your lender: If you are unable to work and wish to make a claim on your PPI, contact your lender to discuss the next steps. You may be requested to complete a claims form. Remember to complete the forms as accurately as possible to avoid delays or refusal of your claim. If you are unsure of any information requested on the form contact the lender.

Get your paperwork in order: When making a claim on a payment protection policy, you may be required to submit documentation to support your claim. Examples may include medical certificates, medical assessments, proof of redundancy etc. Your lender will advise what is required.

Can you cancel a PPI policy?

You can cancel PPI at any time. If you pay off your loan or hire-purchase agreement early, cancel your credit card or if you simply decide you no longer need this cover, ask your lender to cancel your direct debit and cancel the policy. If you paid the insurance ‘up front’ you may be entitled to a refund of the remaining term. Ask your lender about this.

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