Loan Protection Insurance
Many customers find that taking time off work due to an illness or injury means their car loan repayments may be difficult to make.
Often, whilst income may drop in these difficult times, expenses seem to keep rising, possibly making that car repayment harder to manage.
ERIC Credit Insurance will take care of your car repayments for each month that you are unable to work, due to an accident or illness. The good news is that we will keep paying it until you return to work or the loan is paid out. ERIC Insurance also provides cover for Unemployment as well a full Death benefit.
IMPORTANT INFORMATION ABOUT CREDIT INSURANCE
It is important that You read this information and the PDS carefully so You may understand the extent of cover provided and its limitations.
CHOOSING THE TYPE OF COVER
You need to carefully choose the cover types that suit Your needs. There are three types of cover available:
1. Disability Cover;
2. Involuntary Unemployment Cover; and
3. Death Cover
You can choose from the following options:
Disability Cover only;
Death Cover only;
Disability and Involuntary Unemployment Cover; Disability and Death Cover;
Disability, Involuntary Unemployment and Death Cover.
If You choose to purchase this insurance, the cover applicable to You will be shown on the Policy Schedule.
THE PURPOSE OF CREDIT INSURANCE
This Loan Protection Insurance is a Consumer Credit Insurance (CCI) Policy designed to assist You with monies owing to the Financier of Your Finance Contract in the event of Your death, Disablement and/or Involuntary Unemployment depending on the type and level of cover You choose.
The Policy sets out the terms and conditions for the benefits provided under this Credit Insurance. We pay all benefit payments directly to the Financier You have Your Finance Contract with.
The extent to which this Credit Insurance responds is based on Your liability under Your Finance Contract (subject to the application of certain policy benefit limits and exclusions as specified in the Policy).
Some examples of the covers are:
Disability: We will pay the Finance Contract Monthly Repayments if You are unable to work due to contracting a Sickness or suffering an Injury which causes a Disability during the Period of Insurance that prevents You from working in Your usual occupation;
Involuntary Unemployment: We will pay the Finance Contract Monthly Repayments if, during the Period of Insurance, You become involuntarily unemployed, retrenched or fail to have Your employment contract renewed; or
Death: We will pay Your Financier the Payout Figure of the Finance Contract if You die during the Period of Insurance as a result of a Sickness or are killed accidentally.
Please note that this is a limited summary only and not a full description of the covers. Each cover noted is subject to terms, conditions, exclusions and limitations that are not listed in the summary. You need to read the full terms, conditions and exclusions of the Policy which specifies the options taken for a full explanation of the cover.
TABLE OF BENEFIT LIMITS
The following types of cover only apply if the Policy Schedule shows that it applies and You have paid or agreed to pay the Premium for it. Some situations are not covered, see page 12 for exclusions.
Each cover noted is subject to further terms, conditions, exclusions and limitations that are not listed in this table which may be included in this document or in another document which makes up the Policy.
Type Of Cover
· Maximum monthly beneﬁt is the lesser of the Monthly Repayment and $2,500.
· 21 day Excess Period applies.
· Maximum monthly benefit payable is the lesser of the Monthly Repayment or
· Maximum coverage of 150 days per claim.
· Maximum Policy benefit of $10,000 for all Involuntary Unemployment claims.
· 21 day Excess Period applies.
Accidental Death Cover
· Only applies for a Period of twelve (12) months from Policy commencement date.
You are only eligible for cover under the Policy if You meet the following eligibility criteria: You must:
Be at least 18 years of age.
In the case of Death Cover, be under 60 years of age at the commencement of the Period of Insurance.
In the case of Disability and Involuntary Unemployment Cover, be under 64 years of age at commencement of the Period of Insurance.
Be employed for at least twenty hours per week.
Have been continuously employed for the six month period prior to the commencement of the Period of Insurance.
Not be employed in a seasonal or intermittent position.
Not be employed in a contracted position of less than the term of the Finance Contract.
In the case of Disability & Involuntary Unemployment, be a permanent resident of Australia for more than 104 continuous weeks.
NOTE: Involuntary Unemployment Cover is not available to people who are self-employed, nor does it apply if unemployment is due to a contracted position reaching its nominated term.
To find out more about our other Loan Insurance products and how they can be of benefit to you, call us on1300 982 279and speak with one of our insurance specialist today.