Automobile Loan Protection Plan

Product Profile

Credit Life Automobile Loan Protection is a decreasing term cover that an individual can purchase while taking an auto loan from the bank.It protects both the borrower and the lender. Credit insurance is always sold in connection with a specific loan. The cost of the insurance (if any) is generally built in the loan repayment. It's a type of cover in which the amount of the policy matches the loan balance at any given time; designed so that full payment will be made in the event of death, disability or critical illness. The banks have a constant threat of not only facing a financial loss in case of death of the creditor, but also damages its reputation by trying to recover money from the family of the deceased.Similarly, even the borrower does not want to leave the burden of a loan on his/her family, in case of death, disability or Critical illness.Hence, this product has been designed to protect both the parties against adverse consequences.

Benefits

Death Benefit

In-case of the unfortunate death of the insured full outstanding automobile loan balance is paid off, subject to maximum sum assured. The sum assured is a reducing amount of cover, over the loan repayment term.

Temporary Total Disability

Total temporary disability provides coverage to the insured in case of temporary disability as a direct result of an accident that would prevent the insured person from following his/her own occupation or any other occupation to which he/she is reasonably suited for by education or training.

(Accident only - Own Occupation - Waiting Period of 30 days: Minimum monthly installment due on the auto loan with a maximum of 3 payments per claim, limited to 6 payments in total.)

Permanent Total Disability

Permanent Total disability provides coverage in case of disability that would prevent the insured person from following his/her own occupation or any other occupation whish he/she is reasonably suited by education or training.

(Accident or Sickness - own or Similar Occupation - Waiting Period of 30 Days: Outstanding auto loan balance is paid off, subject to maximum sum assured.)

Critical illness

Critical illness provides coverage against 21 dread diseases as mentioned in policy documents.

(Waiting Period of 90 Days: Outstanding auto loan balance is paid off, subject to maximum sum assured.)

In the event that the outstanding auto loan balance is paid off under this policy, the policy thereafter terminates.