FNB Life expects to approve approximately R100 million worth of credit life insurance claims by June 2020 for consumers whose finances have been negatively impacted by COVID-19. The insurance provider is a division of FNB, which previously announced relief measures for customers including assistance with credit insurance where relevant.
Lee Bromfield, Chief Executive of FNB Life says they are processing between 2000 to 3000 claims a day to rapidly increase the resolution of valid claims while shortening the waiting periods.
“In some instances, due to lockdown restrictions, some customers take longer to provide the documentation required to validate their claim and this can cause delays. Where this is the case, we assess every situation on its individual merits to ensure that all valid claims are processed. We currently have a seamless process where customers can submit a claim via the insurance button on FNB App or FNB.mobi,” adds Bromfield.
According to the National Credit Act, credit life insurance is payable in the event of death, disability, terminal illness, unemployment or other insurable risks that are likely to impair the consumer’s ability to earn an income or meet the obligations under a credit agreement.
If a customer is permanently employed and they become unemployed or are unable to earn an income due to contracting COVID-19, or due to measures put in place to prevent the spread of the virus, all their obligations under the Credit Agreement that become due and payable can be paid either for 12 months during the remaining repayment period of the Credit Agreement, or until they are able to find employment or earn an income, whichever is the shorter period.
“We continue to issue direct communication to customers who have credit life insurance with us on their credit products and are firmly committed to supporting our customers during this difficult time. More importantly, we also urge customers to ensure that they have credit insurance on their credit product as credit life is voluntary on some credit products,” concludes Bromfield.