Loan payment protection insurance
policy summary

The insurance for this policy is underwritten by Bankers Insurance Company Limited (a member company of Assurant Solutions).

This document only provides a summary of the main features and benefits of the policy and a summary of the main exclusions or limitations.

Full details of the policy will be provided with your certificate of insurance and you should take the time to read this to ensure that it provides the level of cover you require.

1. Introduction

Loan payment protection insurance can help you protect your loan payments if you become unemployed, suffer an accident or sickness (this is known as incapacity).

2. How the policy works

• You choose the type and level of cover that is appropriate to your own particular demands and needs.

• You pay the premium as it falls due.

• We pay a monthly benefit for up to 12 months if you are unable to work due to unemployment or an incapacity.

Limitations to your cover:

The maximum monthly benefit we will pay for unemployment or incapacity is restricted to the repayment of your monthly loan amount and must not exceed £1000 per month. The maximum cover limitations are shown in section 1.4 of the certificate of insurance.

3. The type of cover available under this policy

The following insurance options are available to you:

• Unemployment and incapacity cover

• Unemployment only cover

• Incapacity only cover

Limitations if you restrict your cover:

• If you take out unemployment only cover you will not be able to make a claim for incapacity

• If you take out incapacity only cover you will not be able to make a claim for unemployment

4. Eligibility requirements

You are covered under the policy if on the start date:

• you are at least 18 and under 65 years of age; and

• you are actively working (i.e. not off sick) or away from work on statutory maternity, paternity or adoption leave; and

• you are working when you apply and have been for at least 6 months immediately before the start date; and

• you are named on the application form; and

• we have accepted your application; and

• you have a loan agreement in force; and

• you are a permanent resident in the UK.

Important Notes:

If you are a contract worker and employed under a fixed term contract of employment, you must meet the conditions above at the start date and we will only consider your cover under the unemployment section in accordance with the definition of work.

If you reduce the time you are working to less than 16 hours a week, please tell us. Your protection under the policy is based on your employment.

You are not covered for any pre-existing medical conditions, any chronic condition, or unemployment before the start date, which may cause you to claim for incapacity or unemployment. We may still insure you but we will not pay benefits directly relating to any claim which we consider you were aware of before the start date.

We will only pay your lender monthly benefits for cover which you have selected and paid for, as detailed on your policy schedule.

5. The number of people who can be insured

If your loan is in your name only, or you have a joint loan and you are the only person who is eligible for cover, we will issue single cover in your name and you will be insured for 100% of the monthly benefit.

If your loan is in joint names and both of you are eligible for cover, you can:

• take out single cover in your name and you will be insured for 100% of the monthly benefit; or

• take out joint cover in joint names and you will both be insured for a percentage of the monthly benefit.

Limitations of joint cover

• Only the higher earner can choose a percentage greater than 50% of the monthly benefit.

6. Unemployment cover

If you have permanently lost your employment or self-employment due to circumstances that are entirely beyond your control, then subject to the policy exclusions we will pay unemployment benefits if you are registered as being unemployed and available for work at a Job Centre Plus office (unless you are exempt). You must also provide us with satisfactory independent evidence that you are actively looking for permanent work.

Alternatively, we will pay unemployment benefits if you cease to work in order to become a full time carer for a member of your family and you are in receipt of invalid care allowance.

Limitations of unemployment cover:

• Insurers will consider the first day of your unemployment to be the date on which you are first registered as being unemployed and available for work (unless you are exempt) and any entitlement to payment in lieu of notice has ended.

The main reasons Insurers will not pay out for unemployment are (the exclusions):

• You were aware of impending unemployment before the start date, or you are notified within 60 days of the start date.

• You were not continuously working for six months before your first claim for unemployment (this is waived if you were continuously working for 6 months before the start date).

• Your work is of a casual, temporary or seasonal nature (including working for a temporary employment agency) or unemployment is a regular feature of your job.

• You resign or accept voluntary unemployment.

• You refuse any offer of reasonable alternative employment by your employer.

• You take early retirement instead of unemployment.

• Your employer takes disciplinary action against you as a result of misconduct, fraud, dishonesty or you fail to meet any performance standards or targets laid down by your employer.

The definitions confirming when Insurers class you as employed or self employed are shown in section 4 of the certificate of insurance.

The full exclusions for unemployment cover are shown in section 8 of the certificate of insurance. General conditions for making a claim are shown in section 9 of the certificate of insurance.

7. Incapacity cover

Subject to the policy exclusions, Insurers will pay incapacity benefits if you are unable to work as a result of the incapacity you are claiming for and you are not receiving any form of payment other than your normal or statutory sick pay.

Limitations of incapacity cover:

• Insurers will consider the first day of your incapacity to be the date on which a doctor or consultant first certifies that you are unable to work.

The main reasons Insurers will not pay out for incapacity are (the exclusions):

• You were aware of an impending incapacity before the start date.

• Your incapacity is caused by any pre-existing condition.

• Your incapacity is due to a chronic condition.

• Any type of self-inflicted injury, alcohol abuse, drug abuse or if you fail to follow any medical advice.

• Stress, anxiety, depression or nervous disorders. This is waived if a consultant certifies the condition stops you from working.

• Pregnancy or pregnancy related conditions.

• Backache or any back related condition if there is no physical or radiological evidence of a medical abnormality. This is waived if a consultant certifies that the condition stops you from working.

The full exclusions for incapacity cover are shown in section 6 of the certificate of insurance. General conditions for making a claim are shown in section 9 of the certificate of insurance.

8. Qualification period

The period of time you will have to wait before you can start to receive any claim benefits is known as the qualification period.

To qualify for claim benefits, your unemployment or incapacity must last for at least 30 consecutive days.

On the 31st day of continuous unemployment or incapacity, we will pay an amount equal to one monthly benefit. From the 31st day onwards we will pay 1/30th of the monthly benefit for each day you remain continuously unemployed or incapacitated. Any claim benefits due to you will be paid monthly in arrears.

We will stop making claim payments on the date that one or more of the following events should occur:

• the end date; or

• you are no longer incapacitated or unemployed; or

• we have paid a maximum of 12 monthly benefits; or

• until the amount you still owe under your agreement at the date of your incapacity or unemployment (excluding any arrears) has been paid; or

• the final repayment date; or

• if you are a contract worker and your contract would have expired, as defined in work (see section 4 of the certificate of insurance)

whichever is the earlier.

9. Making sure your loan remains fully protected

Your benefit will not automatically increase or decrease in line with any changes to your loan payment. Accordingly, you should review your cover on a regular basis to ensure that you have and maintain an adequate level of cover.

You can amend your benefit by contacting British Insurance Limited in writing or by email as detailed in section 21 of the policy summary.

10. Duration of the insurance

This is a monthly contract. The policy is issued for an initial period from the start date to the date the first premium is due and will automatically be renewed for a further month on payment of each premium as it falls due.

11. The paying of premiums

The premium is payable monthly in advance by direct debit.

We can change your premium by giving you 30 days notice in writing. The premium includes Insurance Premium Tax (IPT) at the current rate. If we are required by law to increase the level of IPT or to make any other charges, we will increase your premium from the date any such changes are implemented.

In the event that a premium remains unpaid 30 days after the date on which it falls due, cover under the policy will cease.

12. Direct debit guarantee

This guarantee is offered by all banks and building societies that take part in the direct debit scheme. The efficiency and security of the scheme is monitored and protected by your own bank or building society.

If the amounts to be paid or the payment dates change, Adminicle Limited will notify you ten working days in advance of your account being debited or as otherwise agreed.

If an error is made by Key Adminicle re Adminicle Limited or your bank or building society, you are guaranteed a full and immediate refund from your branch of the amount paid.

You can cancel a direct debit at any time by writing to your bank or building society. Please also send a copy of your letter to us.

You should retain this guarantee for future reference.

13. Cancelling your policy

If having examined your policy you decide not to proceed with the insurance, you generally have 14 days to cancel from the policy start date, however, we offer a 30 day cancellation period without charge.

We will not refund any premiums you have paid if you cancel your policy after the first 30 days.

To cancel, please write to the address shown on your policy certificate.

We may cancel your policy by giving you 30 days written notice. This will not affect your rights to receive claim benefits for any event that occurred before the cancellation date.

14. Making a claim

If you need to make a claim, you should contact the administrator: Adminicle Ltd, Callidus House, Cirencester Business Park, Love Lane, Cirencester GL7 1XD, or Telephone: 01285 886600.

Please fill in the claim form and return it to the Administrator who will process your claim on our behalf. The Administrator should receive the claim form within 120 days of the incident date. If you do not do this, your benefit may be affected. The administrator may allow longer to claim if you ask. The administrator will give you information to help you fill in your claim form and tell you what details are required.

When you make a claim, you must give the administrator all the evidence that is required to prove your claim. You will have to pay any costs involved in doing this. You must give the administrator this evidence in the way that is asked. You must also agree to any medical examination, which will be arranged and paid for by us. Your past employers may also be contacted.

Any payment of benefit under the policy may, in some circumstances, affect your entitlement to Job Seekers Allowance (and possibly other state benefits). Your local Job Centre Plus office will be able to provide you with further information.

15. The Law and language applicable to the contract

The policy is governed by English law. The language used in this policy and any communication relating to it will be English.

16. Complaints

Although we set ourselves high standards, if we do not meet your expectations and you are dissatisfied in some way we would like to know. If you follow the guidelines below, your complaint will be dealt with in the most efficient way possible.

Step 1: Please contact the administrator’s customer services department: Adminicle Ltd, Callidus House, Cirencester Business Park,
Love Lane, Cirencester GL7 1XD. Telephone: 01285 886600.

Please give or quote your certificate number, noted on your policy schedule, so that they can deal with your enquiry quickly.

Step 2: If you are not satisfied with the way your complaint has been dealt with please contact or write to the Operations Director, Assurant Solutions, 117-119 Whitby Road, Slough, Berkshire SL1 3DR. Telephone: 0870 152 6000.

Step 3: If you are not satisfied with the way We have dealt with your complaint you can ask the Financial Ombudsman Service to review your case. You can contact them at the following address: South Quay Plaza, 183 Marsh Wall, London E14 9SR. Telephone: 0845 080 1800.

17. Financial Services Compensation Scheme

Bankers Insurance Company Limited is a member of the Financial Services Compensation Scheme (FSCS). This scheme provides compensation if its members go out of business or into liquidation and are unable to meet any valid claims under its policies. Most insurance contracts are covered for 100% of the first £2,000 and 90% of the remainder of the claim. Further information on the scheme can be obtained from the FSCS. Telephone: 020 7892 7300.

18. Who underwrites this insurance?

The insurance for this policy is underwritten by Bankers Insurance Company Limited which is authorised and regulated by the Financial Services Authority.

19. Who administers this insurance?

This insurance is administered by Adminicle Limited who are the appointed agent of Bankers Insurance Company Limited for the purposes of administering premium collections, premium refunds, claims management and for the payment of claims under this policy.

20. What are the costs of cover?

The costs of cover are expressed as a rate per £100 of monthly benefit and include Insurance Premium Tax and are collected monthly in advance by direct debit.

21. Enquiries and assistance

This policy is offered exclusively by British Insurance Limited who are authorised and regulated by the Financial Services Authority and members of the British Insurance Brokers’ Association.

British Insurance Limited will provide you with a quotation for the cover you require, together with comprehensive information to allow you to make an informed decision about the insurance cover we offer.

The address is:
British Insurance Limited
PO Box 6164
Braintree
CM77 7ZW

Telephone: 0870 240 3946

Fax: 0870 240 3947

Email: mail@britishinsurance.com

Once Bankers Insurance Company Limited have accepted your application for cover, Adminicle will send you a schedule showing the type and level of cover selected together with a copy of the certificate of insurance.