As you will be aware we have for the past nine years been able to offer members an optional sickness and accident cover for their loans whenever requested, and this has been highly successful, with over 99% of claims being paid out and 940 members receiving over £800,000.
Due however to the bad selling and high pricing of Payment Protection Insurance by some Banks and other High Street lenders, rightly the Financial Ombudsman has dealt with many cases of mis-selling against the companies involved.
As a consequence of this and the knock on effect on other insurers, we have been unable to find an insurer to offer this cover for our members in future, and therefore will not be able to offer Payment Protection Insurance for any new loans.
We will continue however to provide Free Life Insurance cover for members, and Cuna Mutual Insurance, along with the Association of British Credit Unions have introduced a new insurance cover which members can purchase called Income Protection Insurance.
This new insurance is designed to help members meet their monthly outgoings in the event that they are unable to work due to accident or sickness. Members can choose the benefit level they wish to cover, the claim excess period and the claim payment period.
The flexibility allows members to choose an affordable policy that suits their needs, it is not linked to loans and would be available whether borrowing or saving from the credit union, also the premiums are collected by direct debit.
Members who are currently covered by Payment Protection Insurance can continue with the policy for as long as they wish until their present loan is finished.
Key points to remember in relation to your current Payment Protection Insurance are:
1. It is optional.
2. We leave it to the member to decide if cover is suited to their needs, the choice is yours.
3. Premiums are paid monthly and no interest is charged on insurance premiums.
4. No lump sum purchase.
5. Cost is 7 pence in the Pound and your savings are also covered.
6. The cost of the insurance is not added to the loan.
7. Cover can be cancelled within 30 days of purchase, without cost to the Member.
8. Cover can be cancelled at any time at all with one months notice.
9. Cover is for accidents or sickness up to 24 months, completion of loan, or return to work – whichever is the soonest.
10.Claims are subject to a 30-day waiting period, however successful claims are backdated to your first day of absence from work.
The Credit Union pays for
Life insurance cover from Cuna Mutual Insurance on member's
loans and savings. (conditions apply) for full details contact the office.
INSURANCE HELPLINE
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Thursday 9am-4pm
Friday 9am-3pm
Phone 0845
45 00 930
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Registered: 1981 under the Friendly Societies Act 1979
