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

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


Security

Personal:

  • Unsecured ( Supported by letter of undertaking)
  • Cash
  • Real Estate

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:

Blantyre Lilongwe Mzuzu
NICO General Insurance Company,
P. O. Box 2592, Blantyre, Malawi.
Blantyre
Tel: 2651822699
Fax: 2651822363
Tel: 2651751366
Fax: 2651751365
Tel: 2651312876
Fax: 2651312564
info@nicogeneral.com info@nicogeneral.com 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.