Insurance Premium Finance

Loans granted to individuals and corporates for the purpose of paying insurance premiums to an insurer for general insurance cover.

Interest Rates

Base Rate + Risk-Based Margin
Note: Risk Base margin rate will depend on customer segment Ruling Personal loan rate applicable, and Negotiable for corporates

Facility Amount

As per insurer’s invoice

Security

Personal:
Unsecured ( Supported by letter of undertaking)
Cash
Real Estate

Disbursement

Payment is direct to the insurer who shall be required to confirm in writing the Bank’s endorsement on the policy as a first loss payee (claim beneficiary)

Term

Maximum of 9 months


SMEs/ Corporates:
The following will be considered but not limited to:

  • Corporate Guarantees
  • Real Estate
  • Cash

Requirements

    Individuals

    • Quotation from a registered insurer or insurance broker plus
    • Completion of insurance proposal forms
    • Pay slips for the past three months
    • Letter of undertaking from employer 

    Additional Requirements for individuals

    • 3 months active account or 6 months statement from other Banks
    • Deposit of 3 months premiums.
    • Insurance policy rights ceded to the Bank.
    • Gross income ratio of not more than 65%
    • Clean CRB Report

    Businesses and Corporates

        • Audited accounts
        • Management accounts
        • 12 months cash flow projections
        • Memorandum/Articles of Association
        • Board resolution to borrow
        • Partnership Agreements/Trust deeds if business is a partnership or Trust
        • Clean CRB Report
        • 12 months cash flow projections
        • Memorandum/Articles of Association
        • Board resolution to borrow

    Insurance Premium Finance Process Flow

      • NICO General Insurance shall generate quotation to client
      • NICO General Insurance shall issue a receipt for the three months Insurance cover as per IPFs product feature
      • NICO General Insurance refers client to NBs Bank Plc for the Insurance Premium Financing (IPF) Process
      • NBS Bank Plc receives all required documentations and requirements for
        screening
      • NBS Bank Plc facilitates the Credit processing and reviews
      • NBS Bank confirms IPF to NICO General Insurance
      • Once a decision has been made on the credit application, it will be communicated to the customer for offer letter signing
      • NICO General Insurance provides insurance cover immediately after approval confirmation
      • NBS Credit team facilitates documentation process and security perfection where applicable
      • Disbursement to be paid directly to NICO General Insurance NBS Bank account
      • NBS Bank shall be responsible for monitoring and ensuring that the IPF loans are performing
      • NBS Bank to be notified on all amendments, deletion and cancellation of Insurance cover

    How To Make a Claim

    In the first instance, claims or any circumstance that may lead to potential claim should as soon as practically possible be notified to:

     

    BlantyreLilongweMzuzu

    NICO General Insurance Company,
    P. O. Box 2592, Blantyre, Malawi.
    Blantyre
    Tel: 2651822699
    Fax: 2651822363

    info@nicogeneral.com

    Tel: 2651751366
    Fax: 2651751365

    info@nicogeneral.com

    Tel: 2651312876
    Fax: 2651312564

    info@nicogeneral.com

    Or contact your authorised insurance broker.

    You will be required to supply the following information:

      • Details of event which has given rise to claim.
      • Your policy details such as policy number and name.
      • Extent of damage or loss.
      • Details of other insurance(s) covering the same event.
      • Information and proof in support of the claim.
      • You may make no admission or statement of liability or make any offer if any other party or parties are involved.