CREDIT LIFE INSURANCE POLICY – Terms and Conditions

  1. Sanlam Life Insurance Zambia Limited (“the Insurer”) undertakes in favour of the Insured to pay the benefits described in the Policy, subject to the receipt by the Insurer of the correct and sufficient Monthly Credit Life Insurance Premium (“the Premium”), as per the Payment Schedule (addendum to the Izwe Loans – Loan Application and Loan Agreement (“the Loan Agreement”) concluded by the Insured and Izwe Loans Zambia Limited (“the Lender”)), and compliance with the terms and conditions of the Policy.
  2. The Policy, as amended from time to time, including any additional documents, forms an insurance contract between the Insurer and the Insured.
  3. The Lender is the agent of the Insurer and has not and will not enter into any other policy which provides the same benefits as applicable to the Policy.
  4. Nature and scope of the Policy – The Policy has been designed to provide protection (see benefits below) in respect of the Loan Agreement.
  5. Eligible Person – Any person who enters into a Loan Agreement is eligible for cover, subject to the minimum age of 19 (nineteen) years on next birthday and the maximum entry age of 60 (sixty) years on next birthday.
  6. Sum Insured – The outstanding amount in terms of the Loan Agreement on the date of the occurrence of the insured event.
  7. Benefits – All benefits are subject to a waiting period of 3 (three) months from the date of commencement of the Policy:
    a. Death Benefit – In the event of the Insured’s death before the age of 65 (sixty five) years, the outstanding balance shall be paid in full to the Lender.
    b. Permanent Disability Benefit – In the event that, before the age of 65 (sixty five) years, the Insured becomes medically certified as permanently disabled, which disability cannot be cured or treated and prevents the Insured from earning an income by continuing with his/her own or similar occupation in keeping with his/her training, education or ability, the outstandin balance shall be paid in full to the Lender. The Insured shall further be deemed to have suffered permanent disability upon the permanent loss, or loss of use, of both eyes, feet or hands.
    c. Temporary Disability Benefit – In the event, and before the age of 65 (sixty five) years, the Insured suffers a medically-certified temporary disability, which prevents the Insured from earning his/her normal income from his/her own or similar occupation, the Insurer shall pay to the Lender, after a deferred period of 30 (thirty) days, the monthly instalment or a proportion thereof if the Insured only suffers partial loss of income, for a maximum period of 6 (six) months or until recovery from such temporary disability, whichever happens first.
    d. Retrenchment Benefit – In the event that, before the age of 65 (sixty five) years, the Insured is retrenched/made redundant by his/her employer during the term of the Loan Agreement, which results in the Insured not earning any income for an uninterrupted unemployment period of thirty calendar days, the Insurer shall pay to the Lender the monthly instalments for a maximum period of 6 (six) months. The Insured must return to full-time employment for at least 3 (three) consecutive months before another retrenchment claim can be paid.
    e. Dread Disease – In the event of the Insured suffering from any of the following dread diseases before the age of 65 (sixty five) years, the outstanding balance shall be paid in full to the Lender: heart attack, stroke, cancer, renal failure, paraplegia, blindness, surgery for coronary heart disease, surgery for an aorta replacement or heart valve ailment, an organ transplant, coma or major burns. The above conditions must be medically certified and supported by evidence acceptable to the Insurer.
  8. Term of Cover – Cover for this Policy and all benefits shall not extend beyond the specified ages of the benefits. Should the debt under the Loan Agreement be terminated or settled early, this Policy will terminate automatically at such date. Cover will also terminate on payment of a death, dread disease or permanent disability claim.
  9. Specific Exclusions – THE FOLLOWING IS NOT COVERED: The Insurer shall not pay a claim in respect of any condition or event arising directly or indirectly from, contributed to by or traceable to or involvement in any: a) criminal activity; b) any condition, disability, illness, bodily injury, defect or the Insured’s ill-health that existed prior to or on the date of application for this Policy; c) suicide, a suicide attempt or intended self-injury for the first 12 (twelve) months of cover; d) driving whilst the concentration of alcohol in the Insured’s blood exceeds the statutory limit in force or whilst the Insured is under the influence of a drug having a narcotic effect, unless prescribed by a duly qualified and registered medical practitioner; e) any participation in hazardous sports for 10 (ten) consecutive days in the 12 (twelve) months prior to the claim; f) the Insured being affected (temporarily or otherwise) by alcohol or drugs, other than as prescribed by a medical practitioner;
  10. NO RETRENCHMENT BENEFIT IS PAYABLE IF:
    a. a death, permanent disability or dread disease claim was paid;
    b. the Insured has not been in full-time employment for the 6 (six) months immediately before the claim;
    c. the Insured has not taken reasonable steps in finding work and/or the Insured is currently receiving any earnings in excess of 75% (seventy five percent) of the Insured’s previous gross salary
    d. (i.e. “cost to company”);
    e. the Insured is self-employed, employment is seasonal or unemployment is a regular feature of his/her work;
    f. the Insured comes to the end of a fixed-term contract, resigns, retires, accepts voluntary retrenchment or comes to the end, or termination, of a work contract;
    g. the Insured is a partner in a partnership, a member of a close corporation or a director of a company, or employed by a family-owned business;
    h. the Insured loses his/her job due to theft, fraud, dishonesty, misconduct, illegal strikes which he/she took part in or due to any lock-out by the
    employer;
    i. the Insured loses his/her job directly or indirectly due to any sickness, disease, injury or medical condition; and
    j. the Insured is retrenched within 3 (three) months of concluding the Loan Agreement.
  11. Premium – The Premium is reviewable by the Insurer and any changes are subject to 1 (one) month’s written notice. At the election of the Insurer, failure to pay the agreed Premium will result in the termination of the Policy. The Premium is payable on the same day as the Monthly Instalment under the Loan Agreement. This Policy does not acquire any paid-up value or surrender value.
  12. Cancellation – The Insurer or The Company may cancel this policy at any time by giving 30 (thirty) calendar days’ notice in writing to the Insured at their last known address. Such cancellation shall commence on The Company’s written approval of cancellation of the Policy. If a Premium has been paid for any period beyond the date of the cancellation of this Policy, the total amount will be refunded to the Insured by The Insurer.
  13. Misrepresentation, Misdescription or non-disclosure – Misrepresentation, misdescription or non-disclosure of any material fact or circumstances in connection with this Policy, a claim in terms of this Policy or the application for this Policy shall render this Policy voidable at the election of the Insurer. In the event that a benefit is paid to the Insured as a result of any misrepresentation/non- disclosure/misdescription/fraudulent action by the Insured, or anyone acting on the Insured’s behalf, the Insured shall repay/return the benefit received under this Policy and the Insurer shall be entitled to take legal action against the Insured to recover the benefit or any costs involved.
  14. Rejection of claim – Time Bar Clause: If the Insurer declines liability for a claim made in terms of this Policy, representation may be made to the Insurer within 90 (ninety) calendar days of the date of the rejection / cancellation letter. Thereafter, action must be instituted against the Insurer for the enforcement of the claim by service of summons within 180 (one hundred and eighty) calendar days, failing which all benefits in respect of such claim shall be forfeited and no liability can arise in terms of such claim.
  15. Claims Notification – EVERY CLAIM MUST BE DELIVERED TO OR FAXED TO CLIENT SERVICES WITHIN 120 DAYS AT:
    PHYSICAL ADDRESS: GROUND FLOOR, SOUTH WING, LUBUTO HOUSE, LUBUTO ROAD, RHODES PARK, LUSAKA POSTAL ADDRESS: PO BOX 31747, LUSAKA, ZAMBIA
    FAX NUMBER: (+260) 211 233 266 TELEPHONE NUMBER: (+260) 211 220 752
    a. The Insurer will at all times have the right to inspect the Loan Agreement/other documents relating thereto and the Policy and to communicate to the Insured any problems regarding the documentation.
  16. HOW TO CLAIM: On the occurrence of any event, which may result in a claim in terms of this Policy, the Insured or his/her Executor shall, at their own expense:
    a. Submit to Client Services full details in writing of any claim, as soon as reasonably possible, up to a maximum of 180 (one hundred and eighty) days from the event giving rise to the claim. The Insurer shall not be liable to pay any benefit if the full details of any claim are not received within the period stipulated;
    b. Furnish Client Services with such information, declarations and/or documentation, which the Insurer may require to process the claim;
    c. Only original documentation will be accepted, copies of documentation need to be certified and fax copies are not acceptable;
    d. On receipt of the claim form, the Insured must complete all details, provide all documentation as requested and sign the claim form.
  17. Fraud – If any claim in terms of this Policy is in any respect fraudulent, or if any fraudulent means or devices are used by the Insured, or anyone acting on behalf of the Insured, to obtain any benefit in terms of this Policy, or if any accident, loss, damage, liability, injury, disability, illness or termination of employment is occasioned by any wilful act on the part of the Insured or with his/her connivance, all benefits and premiums paid in terms of this Policy shall be forfeited.
  18. Assignment – it is recorded that the Insured assigns and transfers all the rights, title and interest in this Policy to and in favour of the Lender as security of the outstanding debt by the Insured, owed to the Lender. This assignment supersedes and cancels any other beneficiary nomination made by the Insured.
  19. Complaints procedure for the Insured’s benefit – The Insurer undertakes to settle all valid claims as quickly as possible. However, it is in the public’s best interest to verify the validity of any claim and to investigate teh appropriate aspects thereof. As such, there may be instances where where a delay could occur.

IF YOU HAVE A COMPLAINT OR YOU ARE IN ANY WAY UNHAPPY WITH THIS POLICY, PLEASE CONTACT THE INSURER’S COMPLIANCE OFFICER: TEL: (+260) 211 225 6799 EMAIL: sandras@african-life.com.zm