30/04/2020
Just a word of advice regarding credit life insurance with the major banks in South-Africa :
Since 10 August 2017, the NCA ( NATIONAL CREDIT ACT, act 34 of 2005) issued a new law under credit life insurance for all consumers.
*What does this mean during Covid-19?*
If your bond, credit or any other form of debt with your bank is issued after 10 August 2017, with credit life insurance, you can claim from your insurance instead of taking a premium holiday which involves an extention of the term with interest and other cost.
What does it mean to claim in this regard?
This means your insurance with your bank is obligated to pay your debt.
In the Goverment Gazette it states the following :
( 9 Feb 2017)
"In the event of the consumer becoming unemployed or UNABLE TO EARN AN INCOME, other than as a result of permanent or temporary disability, all the consumer's obligations under the credit agreement that become due and payable -
- for a period of 12 months
- during the remaining repayment period of the credit agreement, or
- until the consumer finds and employment or is able to earn an income, whichever is the shorter period."
This is the excact reason why we pay for insurance, especially for a world wide pandemic that we have no control over.
I would strongly advise each South-African to double check their policy documents or debt agreements. I got confirmation from a major bank in SA that it is seen as a valid claim during this pandemic.
Please share this with a family member, a friend or colleague that might struggle or suffer significant loss and sit with sleepless nights and financial stress.
Stay safe dear SA 🇿🇦🇿🇦🇿🇦
