Standard Bank has announced that its clients will receive a 25% cashback on car insurance premiums.
The cashback will be paid back 14 days after the lockdown ends, to clients who are up to date and continue to pay their car insurance premiums over the lockdown period.
The cashback on premiums forms part of a range of insurance relief initiatives during Covid-19.
Nolwandle Mbalo from Standard Bank Insurance says: “South Africa is under lockdown. As such our clients are staying at home and most are not using their vehicles. It made sense to find a way to provide them with some financial relief when it comes to car insurance.”
Standard Bank Insurance says it will calculate the cashback at a rate of 25% per day on the premium that a client pays on their car insurance and the payments will be made into the same bank account from which Standard Bank collects the monthly car insurance premiums.
The cashback is applicable for government’s lockdown period, which came into effect on March 27 and is currently set to end on April 16.
Standard Bank Insurance says if the lockdown is extended, it will adjust the client’s cashback to cover the full period of the lockdown.
The cashback for each month will be calculated separately.
Credit life insurance relief
The bank also announced potential relief for credit life insurance clients.
Credit life insurance protection is a solution to help ensure that consumers are protected and shielded from their personal or business credit exposure when unforeseen events impact their ability to earn an income.
Examples of typical events that may be covered through credit life insurance policies include death, disability, critical illness and retrenchment.
“It is important that customers understand their policies and terms, and the protection provided on their particular policy, to help them make the right decisions in these difficult times,” Standard Bank says.
It says that if the terms of the loan granted by Standard Bank required compulsory comprehensive credit life insurance cover, and the loan was granted after August 9, 2017, its comprehensive credit life insurance product will cover instalments up to 12 months in the event of a client becoming unable to earn any income.
Standard Bank lending products that require comprehensive compulsory credit life insurance include all personal term loans and home loans to customers who have a combined income of less than R25 000.
The policy meets the requirements set out in the National Credit Act Credit Life Insurance Regulations that became effective during August 2017 and includes protection against your inability to earn any income. As per the regulations, certain exclusions may apply.
Standard Bank says it will provide discretionary relief for customers who have received housing loans and personal term loans prior to August 9, 2017, in respect of their credit agreement instalments for up to three months if they are unable to earn any income.
“This discretionary relief will be available in the period between April 1, 2020 to June 30, 2020 to assist our customers during these unprecedented times. These instalment relief payments fall outside the credit life insurance policies.”
The bank says where a customer has chosen to purchase a voluntary Standard Bank credit life insurance policy linked to other lending products, such as home loans, credit cards, vehicle and asset finance, student loans and revolving personal loans, they should review their policy terms to understand the events that they are covered for.
Standard Bank says it will issue direct communication to customers, helping to explain the terms and conditions of their individual credit life policies.
Customers are urged to apply for their qualifying credit protection relief as soon as possible. Where customers have difficulty in sourcing the relevant documentation in order to submit their claim and to avoid any negative impacts of possible delays, they are urged to adopt Standard Banks’ lending relief options.
Article Credit CapeTalk.