Version 1.0
Prepared by: @Lorraine Sebata
Approved by: @Feli Capron
Reviewed date: 2025-09-12
Next review date: 2026-09-11
This policy applies to all Loan Officers and administrative staff involved in managing customer loans and insurance services.
This policy outlines the principles and procedures for handling customer insurance renewals, ensuring that the company's and its customers' interests are protected. It specifies the conditions under which the company will facilitate the payment of insurance premiums on behalf of the customer, integrating these payments into existing loan agreements.
This policy applies to all Loan Officers and administrative staff involved in managing customer loans and insurance services. It covers the processing of insurance renewals provided by Shield Insurance and the conditions under which insurance premiums can be added to a customer's loan account.
Insurance premiums shall not be routinely integrated into new auto loan disbursements. This policy is only applicable to existing loans where a customer is facing difficulty in paying their insurance renewal premium.
The company will only facilitate the payment of an insurance premium on behalf of a customer if the customer is unable to pay their renewal premium directly. Eligibility is subject to verification of the customer's current loan status, age, place of employment, and remaining loan term. Only comprehensive insurance premiums may be added to a customer’s loan; third-party insurance premiums are not eligible for this process.
When a customer qualifies for assistance, the insurance premium amount will be added to their existing loan balance. The new loan balance will include a revised repayment schedule, which the customer must formally agree to and sign.
All payments for insurance premiums facilitated under this policy must be paid directly by the company to Shield Insurance Agents and Brokers. No cash or direct payment will be given to the customer for this purpose.
All transactions, agreements, and communications related to insurance premium assistance must be thoroughly documented in the Loan Management System (LMS). This includes digital copies of the Shield listing, screenshots of the entries in EP, and the signed digital addendum to the loan agreement.
Loan Officer: Responsible for verifying a customer's eligibility for insurance premium assistance, communicating the new terms, and ensuring all required information is accurately entered into the LMS.
Finance Department: Responsible for processing the direct payment to Shield Insurance on behalf of the customer.
Operations Department: Responsible for ensuring the smooth flow of information and documentation between internal teams and external partners.
This policy will be reviewed annually to ensure its continued effectiveness and alignment with the company's financial practices and risk management principles.