Valid as of 01.09.2022
The terms and conditions of loan insurance (hereinafter the ‘Terms and Conditions’) describe the scope of insurance cover of obligations arising from a consumer loan agreement or hire-purchase agreement, action to be taken in the event of an insured event, and the principles of indemnification.
AS LHV Finance (hereinafter ‘policyholder’), registry code 12417231, address Tartu mnt 2, 10145 Tallinn, email firstname.lastname@example.org, has entered into an insurance agreement with the insurer AS LHV Kindlustus (hereinafter ‘LHV’) 14973611, address Tartu mnt 2, 10145 Tallinn, email email@example.com, in which the insured person is a person (hereinafter ‘borrower’) who has entered into a hire-purchase contract or a consumer loan agreement with insurance cover (hereinafter ‘loan agreement’).
The Terms and Conditions form an Annex to the borrower’s loan agreement and apply to each loan agreement separately.
Insured event is an event provided for in the Terms and Conditions, in the event of which LHV must indemnify loss in the cases and to the extent specified in the Terms and Conditions.
Insured object is the borrower’s financial obligations to the policyholder arising from the loan agreement.
Monthly payment compensation is compensation in an amount corresponding to the amount of the instalment stipulated in the payment schedule of the loan agreement, including repayment of the credit amount, interest, contract fee and paper invoice fee including VAT and monthly fee. The compensation does not include late interest and contractual penalties.
One-time compensation is compensation in an amount corresponding to the total amount of obligations arising from the loan agreement, including the balance of the outstanding credit amount, accrued interest, contract fee, paper invoice fee including VAT and monthly fee. The compensation does not include late interest and contractual penalties.
Employment is the employment of the borrower under an employment contract, a contract of a member of the Management Board or a public service contract.
Validity and waiting period of insurance coverage
Validity of insurance coverage
- Insurance cover begins on the day on which the loan agreement was concluded.
- If the loan insurance is added for the respective borrower during the term of the loan agreement, the insurance cover starts on the day when the loan insurance was added to the loan agreement.
- The insurance cover expires at the end of the loan agreement or earlier on the basis of a corresponding application by the borrower during the validity of the loan agreement, notifying the policyholder thereof.
- The policyholder has the right to terminate the insurance cover earlier by notifying LHV and the borrower two months in advance.
- LHV does not pay indemnity for an insured event that occurred before the start of the insurance cover or after the end of the insurance cover.
In the event of an insured event, the borrower must:
- inform the policyholder of the insured event as soon as possible after its occurrence or upon becoming aware of it at the email address firstname.lastname@example.org;
- follow the instructions given by LHV and the policyholder;
- provide LHV with correct and complete information on the circumstances of the insured event;
- take into account the fact that LHV may request documents and written and oral explanations from the borrower in order to establish the circumstances of the insured event;
- register as unemployed with the Estonian Unemployment Insurance Fund after becoming unemployed and notify LHV thereof;
- notify LHV of the termination of the registration as unemployed, as well as of the termination of the period of incapacity for work or hiring;
- provide proof of temporary incapacity for work in the form of a certificate of incapacity for work issued by a doctor;
- prove incapacity for work with a decision issued by the Estonian Unemployment Insurance Fund.
The borrower is obliged to do everything in its power to prevent the insured event and reduce possible damage and to avoid a possible increase in the insurance risk.
After receiving the notice of loss, LHV must:
- start claim adjustment on the insured event immediately;
- inform the borrower of which documents must be submitted to LHV to establish the cause of the insured event;
- make a decision on indemnifying loss or refusal to do so within ten working days of the receipt of all the required documents and determination of the circumstances necessary for making a decision. With good reason, LHV may extend the term for making a decision on indemnification of damage.
The activities of LHV are supervised by the Financial Supervision Authority located at Sakala 4, 15030 Tallinn. The insured person has the right to file a complaint against LHV with the Financial Supervision Authority (phone 668 0500, email email@example.com, website www.fi.ee). The Financial Supervision Authority does not resolve contractual disputes between LHV and the insured person.
All disputes shall be settled by agreement of the parties on the basis of the Terms and Conditions and the legislation of the Republic of Estonia.
The extrajudicial bodies for resolving disputes are the conciliation body of the Association of Estonian Insurance Companies, Mustamäe tee 46, 10621 Tallinn (phone 667 1800, email firstname.lastname@example.org), and the Consumer Protection and Technical Surveillance Authority, Endla 10a, 10122 Tallinn (phone 667 2000, email email@example.com).
The law of the Republic of Estonia applies to the Terms and Conditions.
The limitation period for claims arising from the conditions is three years. The limitation period shall run from the end of the calendar year in which the claim becomes collectible.