Consumer Credit Insurance protects you, as the borrower, in the advent of accident,
sickness, involuntary unemployment, or death. If you are unable to work due to accident,
sickness or involuntary unemployment, CCI insurance will cover your loan repayments
for a stated period of time or until you are able to return to work. In the advent
of death, the credit contract may be repaid in full.
The Consumer Credit Code regulates the conduct of authorised representatives selling
Consumer Credit Insurance. Under the Credit Code;
- you cannot be forced to take out CCI insurance,
- you cannot be forced to take out CCI insurance with a particular insurer,
- the maximum commission allowed to be paid by the insurer is 20% of the gross written
- details of the CCI insurance and commission are to be disclosed on the loan contract,
- a copy of the CCI policy must be provided by the insurer within 14 days after the
acceptance of the proposal, and
- if you terminate your loan, any CCI insurance is also automatically terminated
by the lender and a statutory amount refunded to you as a reduction in the amount
you must pay to finalise the loan.
Benefits of Consumer Credit Insurance (CCI)
- Protects your finances in the event of accident, sickness, involuntary unemployment,
- CCI can be easily financed into most loan contracts.
- A CCI policy can be tailor made to accommodate the areas that you feel most at
- Offers financial security in the event of the unfortunate occurring.
- In the event of Death, the typical life component will pay the outstanding balance
of the credit contract up to a specified maximum value.
- In the event of Disablement, the typical disability component will pay the lesser
of the regular monthly loan repayment for the period of disability up to a specified
- In the event of involuntary unemployment, the typical unemployment component will
pay the lesser of the regular monthly loan repayments for 90 days or a designated
maximum value per claim. There is also usually a cap on the maximum benefit payable
for the entire period of the policy.