Commercial Bank of Africa (the bank) requires all customers taking a personal unsecured loan to insure the outstanding loan balance. The bank, through its subsidiary CBA Insurance Agency, has arranged for a Group Credit Life policy with Britam Life Assurance Company (Kenya) Limited which is applicable only for customers who opt to take the bank arranged credit life insurance.
The bank arranged insurance has the following benefits
This benefit is payable in case of death due to an accident or illness. Benefits payable is the amount of loan outstanding at the time of death excluding any arrears due to non-payment of loan.
Funeral Expense benefit
This benefit is payable to the nominated beneficiary within 48 hours of notification and documentation of death. In case of joint life assured, the benefits is payable on first death only.
If the applicant become permanently and totally Incapacitated because of injury or illness and prevented from following your own, or any similar occupation, for more than six (6) consecutive calendar months from the date of such injury or illness, the benefits will be treated in the same manner to the Disability Benefit. However, there will be a six (6months) waiting period from the commencement date during which only permanent and total disability claims resulting from accident and not natural illness will be paid.
This benefit is payable in the event of being retrenched and being without employment for a period exceeding 30 continuous days from the date of retrenchment. The benefit amount is the monthly loan instalment payable to the bank for a period of 9 months, or up to the date of re-employment whichever is earlier. The payment shall exclude any instalment arrears or charges. It is payable once in a life time of the facility.
The insurance premium in any event is a one off amount payable at inception of the facility/loan, the quantum of which is based on the duration and amount for the facility (ies) provided by the Bank.
We further wish to advise that, Britam Life Assurance Company (Kenya) Limited has made an adjustment of the annual insurance premium payable from 0.41% of the loan amount to 0.50% of the loan amount effective from 1st April 2018.
Should you require any further information or clarification on the above, please do not hesitate to us on telephone number +254 020 2884444 or +254 711 056 444; email address firstname.lastname@example.org at your earliest convenience.
We thank you for your support and look forward to a continued fruitful relationship.