NCSL introduces new loan insurance

THE Nasfund Contributors Savings and Loans Society (NCSL) has introduced a loan insurance to secure repayments in the events of accident or death by a member.
Lending manager Bernard Geita said the new insurance cover was applicable to members who had been contributing to Nasfund Contributors Savings and Loans Society  for more than three months and were able to satisfy the credit assessment criteria for approval of a 1:2 loan ratio.
“This loan insurance product protects members and the society,” Geita said.
“Loan insurance benefits the members in the event that they are unfit to work and repay their loan, or if members gets involved in an accident that may result in the loss of employment or death.”
Geita said in such cases, the loans would be fully repaid by insurance.
The NCSL will be working with Capital Life Insurance to ensure members’ loan commitments are met during unforeseen medical situations or deaths.
“For instance, if a member is involved in an accident and requires time to recover and is put off the payroll, the loan insurance cover will assist with meeting the loan repayments. Or in the case of untimely death, the loan insurance cover will enable full clearance of the loan,” Geita said.
The loan insurance product was approved by the Bank of Papua New Guinea and launched on Nov 1 last year.  It was effective from August 1, 2017.