Credit Contract Indemnity (CCI) insurance will pay your vehicle loan repayments if you suffer an event (which is covered by the policy) and find yourself unable to make those repayments.
There are three different types of CCI – all designed to protect you and give you peace of mind:
- Salary/Wage Earner Cover which covers some or all repayment amounts under the Credit Contract in the event of your Death, Accident/Illness, Hospitalisation, Redundancy, or Industrial Action;
- Business Owner Cover which covers some or all repayment amounts under the Credit Contract in the event of your Death, Accident/illness, Hospitalisation, Bankruptcy, or Business Interruption;
They’re specific to your income source at the time of purchasing the policy and getting your vehicle loan and are detailed in the following CCI table. The benefits are payable directly to your finance provider in the event of a claim.
In the unfortunate event of death, this policy will pay the outstanding balance of your credit contract less any arrears.
CCI example: A broken shoulder doesn’t stop Sarah
Sarah is a full-time account manager for a manufacturing company. She sees a great Suzuki Swift on Fenda and strikes a deal for $10,000 that she finances for 36 months. She would like Credit Contract Indemnity Insurance for 36 months to match the term of the loan.
The cost of this policy would be 5.8% of $10,000, which comes to $580. This amount would be added to her loan repayments at the same rate as her loan. She has a big misstep when playing netball and breaks her right shoulder and sprains her left ankle so she can’t get out and about to see her clients. Her Credit Contract Indemnity Insurance will cover her loan repayments while she’s out of work for eight weeks.
Example only. See details of what Credit Contract Indemnity Insurance covers you for in the policy document.
The table shows the benefits and main exclusions of Provident’s CCI policy. If you decide to purchase the CCI policy, you do so with the understanding that you have read and understood the policy you are buying. Please review all the details and policy conditions in the CCI policy document.
POLICY COVER AND COSTS
Credit Contract Indemnity Insurance (CCI): Covers your loan repayments if you are unable to due to unforeseen circumstances.
Cover
SALARY / WAGE EARNER
DEATH: Yes ●
ACCIDENT / ILLNESS: Yes ●
REDUNDANCY: Yes ●
HOSPITALISATION: Yes ●
INDUSTRIAL ACTION: Yes ●
BUSINESS INTERRUPTION: No ●
BANKRUPTCY: Yes ●
BUSINESS OWNER
DEATH: Yes ●
ACCIDENT / ILLNESS: Yes ●
REDUNDANCY: No ●
HOSPITALISATION: Yes ●
INDUSTRIAL ACTION: No ●
BUSINESS INTERRUPTION: Yes ●
BANKRUPTCY: Yes ●
Cost
Cost is calculated based on a percentage of the value of the loan, dependant on the length of the term.
SALARY / WAGE EARNER
36 MONTHS: 7.2%
48 MONTHS: 7.6%
60 MONTHSS: 8.2%
BUSINESS OWNER
36 MONTHS: 7.2%
48 MONTHS: 7.6%
60 MONTHSS: 8.2%
KEY BENEFITS
Credit Contract Indemnity Insurance (CCI)
Death
Covers balance payable in the event of your death.
Accident/Illness
Covers monthly payments in the event you are unable to work due to accident/illness, until you are declared fit to resume work.
Redundancy
Covers up to 12 months of instalments in the event you are made involuntarily redundant.
Hospitalisation
Covers monthly payments in the event you are unable to work due to hospitalisation, until you are declared fit to resume work.
Industrial Action
Covers up to 6 months of instalments and a maximum of $12,000 in the event you are unable to work due to industrial action.
Bankruptcy
Covers up to 6 months of instalments and a maximum of $12,000 in the event that you are made involuntarily bankrupt.
Cooling off period
You can cancel this Policy within 5 working days after the date on which you purchased the Policy. Please review full details of the cooling off period on the inside cover of the CCI policy document.
MAIN EXCLUSIONS
Credit Contract Indemnity Insurance (CCI)
Death
Any arrears at date of death.
Accident/Illness
If you have an illness or accident and suffer a financial loss as a result of being unable to work in your usual Full Time Employment, we will pay your Financier, for your credit, the instalments that become due and owing under the Credit Contract calculated on a daily basis:
- From 7 days after you cease working;
- Until you are declared by a Registered Medical Practitioner as fit to return to work in your usual Full Time Employment, or occupation for which you are reasonably suited by education, experience or training.
We will not pay any amounts that were due and owing under the Credit Contract prior to your illness or accident.
Redundancy
The first 30 days after you have registered as unemployed with Work and Income New Zealand.
Hospitalisation
The first 5 days of hospitalisation, plus any arrears. Your election to have surgery of a non-essential or non-emergency nature.
Industrial Action
The first 30 days after your salary/wages cease to be paid.
Bankruptcy
The first 30 days after you have become involuntarily bankrupt.
Exclusions
Policy Exclusions and General Conditions are on pages 5-7 of the CCI policy document.
Fenda insurance products
Mechanical Breakdown Insurance (MBI)
Covers you in the event of a mechanical or electrical vehicle failure.
Credit Contract Indemnity Insurance (CCI)
Covers your loan repayments if you are unable to due to unforeseen circumstances.
Guaranteed Asset Protection Insurance (GAP)
Covers the shortfall between what you owe a finance company and what is paid out by your insurer.
Comprehensive Motor Vehicle Insurance (MVI)
Covers your vehicle for accident, fire and theft.
