On Jan. 8, OMN FSA issued decision re credit life insurance policy.
OMN FSA issued Decision No. 4/2024 regarding the unified credit life insurance policy.
Regulate contractual relationship between the borrower, bank and insurance company.
Document dated Jan. 8, 2024, was received on Feb. 23, 2024 due to a fixed feed.
Overview
Provide unified framework for loan insurance contracts terms and conditions provided by insurance firms to borrowers from financial institutions in case of death, disability.
Provisions guarantee protection for the rights of the credit life insurance policyholders by specifying the basic benefits of the insurance coverage and the optional benefits.
Exclude loan contracts concluded before policy's effectiveness, unless agree otherwise.
Borrower is compensated for damage incurred in case of death, permanent and total disability at no less than 75%, which is a result of an accident or illness that occurred.
Outstanding loan amount is repaid from death date established by official authorities.
Indemnity in case of total permanent disability is determined after full recovery period estimated at 12 months from accident date or referral to the medical committee date.
Provide advantages to policyholders to obtain options at competitive prices choosing appropriate insurance firm without committing to offered insurance option by creditor.
Insurance company may not reject claim on pretext of not disclosing medical condition that led to death, a total permanent disability or a loss included in additional benefits.
Provided that death or disability occurs after 4 years from the beginning of the policy.
Exclude cases of intentional forgery of papers issued by authorities or medical reports.
Effectiveness
Implementation of the provisions of this policy commences on Jun. 1, 2024.
