All credit products must be covered by credit insurance, which will settle outstanding debt if you die or are permanently disabled. Since August 2017, your instalments are also covered for up to 12 months if you become unemployed, or unable to earn an income – not necessarily due to illness. You should be covered even if you are not fired but placed on unpaid leave.
If you are permanently employed and you 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; your premiums payable under the remaining repayment period of your credit agreement can be paid for either 12 months, or until you are able to find employment or earn an income, or whichever is the shorter period.
If you are self-employed, and you are unable to earn an income due to the crisis, the same criteria should apply. If you can prove that you are unable to earn an income, your instalments should also be covered.
It will be up to the client to confirm whether you can benefit from the insurance. It is extremely important that South Africans first find out whether they are covered by credit insurance, before they apply for a debt holiday.
CURRENT STATUS: You need to check if you have credit insurance with your bank.
- Capitec & African Bank cover pays the premium up to 12 months, for clients on short-term or compulsory unpaid leave, where the reduction in basic.