VOLUNTARY LOAN INSURANCE
Loan insurance is intended to protect property interests, both of the borrower and of the lender, that is, when you insure your liability to the bank for failure to repay the loan, you secure your liabilities with a guarantee, thereby making yourself safe against unforeseen circumstances that may prevent you from paying debt to the bank.
The object insured is the property interests of the policyholder associated with his/her obligation to indemnify for beneficiary’s losses caused by the policyholder’s failure to perform/improper performance of obligations under loan agreement.
- Sum insured cannot be more than the principal amount of the borrower’s debt to the bank under the loan agreement.
- After payment of insurance indemnity, the sum insured is reduced by the amount of insurance indemnity paid, unless additional payment of insurance premium is made.
The following circumstances shall be deemed an insured event:
1. debtor is declared bankrupt by enforcement on the basis of an effective court decision, as a result of fire, explosion, lightning, natural disasters (hurricane (storm), hail, flood, mudflow, landslide, rock fall, snowmelt floods, groundwater discharge , earthquakes);
An insured event is deemed to have occurred subject to simultaneous occurrence of the following prerequisites:
- there is a legally effective court judgment declaring bankruptcy of the debtor as a result of misuse of funds;
- fact of failure to perform/improper performance of obligations by the borrower under the loan agreement;
- record was entered into the Unified State Register of Legal Entities on liquidation of the borrower who is a legal entity;
- the following have occurred: fire, explosion, lightning, natural disasters (earthquake), hurricane (storm), hail, flood, mudflow, landslide, rock fall, snowmelt floods, groundwater discharge).
2. death of the borrower within one year from the date of an accident;
3. establishment of disability groups 1,2,3 of the borrower as a result of an accident.