Group Credit Assurance
What is Group Credit Assurance
Group Credit Assurance is usually suitable for employees of banks, building societies, micro-finance institutions, cooperative savings and credit societies, hire- purchase dealers and employers who offer credit facilities to their employees.
- The policy guarantees to settle 100% of the outstanding loan in respect of a deceased member of the scheme or when a member becomes totally and permanently disabled by accident to engage in any occupation for a wage or profit.
- It can be taken with a funeral expense benefit at an additional but modest premium and guarantees to make funds available to finance funeral expenses in respect of a deceased member of the scheme.
- The funeral last expense rider benefit pays out within two working days of notice
- The level of benefit per member under this cover will be decided on by the financier in consultation with members of the scheme and should be uniform.
- These levels of cover range from KSh50 000/= to KSh500 000/=.
- A retrenchment cover is another optional rider on this product for those in employment, which relieves policy holders of loan instalments for a specific period while they change between jobs.
Depending on the arrangements of collection of premiums from the debtors by the creditor, premiums can be paid in two ways:
- An annual premium is payable on commencement of the cover and thereafter annually on the renewal date
- A single premium is paid for the whole term of the loan
- Group Proposal Form: This completed once by the creditor
- A schedule of details of the persons to be covered. The schedule should have the following details:
- Name and surname
- Date of birth
- Identification number
- Outstanding loan
- Interest rate
- Loan repayment term
Upon receipt of the group proposal form, the member’s schedule and the premium of the policy document will be issued. Under this policy there are no medical examination requirements. However, a negotiated waiting period will apply. To claim the members need to:
- Provide proof of claim documents
In case of benefit claims, the documents required are:
- Benefit claim notification letter
- Original death certificate in case of benefit claim by death
- Satisfactory medical examination reports in case of benefit claim by permanent and total disability
- Certified copy of National ID card of the deceased
- Loan repayment statements
The outstanding loan will be determined and a settlement within three days.
*The policy does not have an HIV/Aids exclusion clauses.
**The requirements indicated are the basic but non – exhaustive KYC requirements.