09.03.2022
Coop Pank is introducing the insurance that protects private individuals buying cars with the help of leasing against payment difficulties in the event of job loss and disability. Leasing insurance is provided by the bank’s subsidiary Coop Liising AS in cooperation with If P&C Insurance AS.
Martin Ilves, head of Coop Liising, explained that customers now can conclude an insurance contract with a leasing company, according to which, in the event of an unexpected job loss or disability, IF Kindlustus will pay leasing premiums for up to six months. “If insurance premiums are paid along with the lease instalments, this insurance also covers them. For example, if the monthly payment is 200 euros, then if an insured event occurs, the insurance company pays the client up to 1,200 euros within six months, and the residual value of the leased car is reduced by this amount,” he specified.
Coop Pank’s new insurance product will allow a person to use a leasing solution to insure against temporary and permanent disability, job loss and sudden death. The prerequisite for receiving compensation is the loss of a job (except where the insured person intends it) or disability due to an accident that lasted for at least a month. In the event of death as a result of an accident, IF Kindlustus covers the entire outstanding amount of the lease – the car remains the property of the family of the insured person.
According to Martin Ilves, all financial decisions must be carefully thought out, but no one is able to predict an unexpected job loss or sudden health problems: “In this case, the concluded leasing insurance contract will help mitigate financial problems while looking for a new job or recovering from the accident.”
So far, Coop Pank has offered insurance to those who have taken home and small loans, while offering insurance to leasing customers is a novelty. “No other leasing service provider, apart from Coop Leasing AS, currently offers such a solution. There have been cases around the world when automakers briefly helped customers who found themselves in a difficult situation due to the economic crisis make lease payments. Gradually, insurance companies will also offer such a solution, although such a service has not yet become widespread in Estonia,” said Martin Ilves.
The size of a leasing insurance premium depends on the amount of the monthly car leasing payment. For example, if the payment is 150 euros, a monthly insurance premium of 8.85 euros is added. “These are small expenses, but they provide confidence that as a result of a job loss or an accident the family’s financial burden will not increase,” Ilves explained.
Both new and existing customers of Coop Leasing AS can conclude leasing insurance contracts. The insurance premium is added to the monthly leasing bill. More information on the conditions of insurance is available on the Coop Pank website.
Estonian-owned Coop Pank is one of the five universal banks operating in Estonia. The number of clients using Coop Pank for their daily banking is 117,600. Coop Pank aims to put the synergy generated by the interaction of retail business and banking to good use and to bring everyday banking services closer to people’s homes. The strategic shareholder of the bank is the domestic retail chain Coop Eesti comprising 330 stores.