When Can A Borrower Make Payment Protection Claim.A number of people take payment protection insurance when they take a loan or subscribe to a credit card service. However most of them are not able to avail the benefits of the service because they are not aware of the conditions when they can make payment protection claim. This results in a dual loss. Not only do they have to pay an extra sum of money as the premium of payment protection insurance, they also have to pay the fines, interest and other penalties levied by the lender in case of payment default. Therefore it becomes necessary for every person who gets payment protection insurance to know when can he make payment protection claim. The basic concept behind payment protection insurance is that most of the people do not make payment faults deliberately. Rather they do it because of reasons that are not in their control either. Thus payment protection insurance acts as a stop gap measures which takes off one thing to worry about when the borrower has other far more important things to take care of. The payment protection claims can be made when the income flow of the borrower goes slow or dries up completely. The conditions are discussed in the policy bond of the payment protection insurance. Payment protection claims can be made under any or all of the four given conditions. Loss of employment because of reasons not in the control of borrower: There might be a number of reasons when the borrower loses his job. The reasons which can be attributed to the borrower do not constitute a reason to give rise to payment protection claims, but in cases where the borrower was helpless, like the dissolution of company, he can make claims for payment protection. Prolonged illness of borrower: If the borrower falls victim to a prolonged illness and he cannot indulge in any gainful activity, he may become eligible to make payment protection claims. The kind of illness, the amount to be spent on treatment of borrower and a number of other things are considered here. Permanent or severe disability of borrower: If the borrower becomes severely or permanently disabled due to an accident or illness and he is not able to earn as much income as he did prior to the event, or if he is not able to earn any money at all, he becomes eligible for a payment protection claim. Please note that the conditions mentioned here to make a payment protection claim, are not exhaustive and some other cases might also make the borrower eligible for a payment protection claim. Also remember that these claims are just like any other insurance claim and they are verified before payment starts. |