Insurance Premium Financing is a loan product designed to finance payment of non-life insurance premium due to an insurance company from the Insured. The Bank enters into an agreement with the Insurer and the Insured whereby the Bank agrees to pay immediately in full the insurance premium of the Insured on the terms and conditions stipulated in the IPF Agreement.
IPF requires endorsement by an Insurer as it creates certain rights and financial interest of the Bank in the insurance policy financed and should therefore be noted in the policy appropriately.

Parties to an Insurance Premium Financing transaction

1. Applicant/Borrower/Insured – is the principal debtor borrowing funds to finance payment of insurance premium due under the policy in the name of the principal debtor as the Insured.

2. Insurer – Is the Insurance Company issuing/endorsing the policy or contract of insurance in the name of the Applicant/Borrower/Insured.

3. Bank/Financier – This is the provider of funds to the Applicant/Borrower/Insured for the payment of insurance premium.

A. The basic conditions contemplated in the IPF Agreement are twofold:-
• The Insured agrees to pay the Bank the insurance premium at an agreed rate of interest over a period of time.
• In the event that the Insured fails to pay the agreed installments to the Bank as scheduled, the Insurer shall immediately upon receiving first demand or notice from the Bank redeem the pro-rated balance of the insurance premium (refundable premium) paid to Insurer.

B. Eligible Insurance Policy and Premium
• There is no bias on the types of insurance policy for which insurance premiums shall be financed. It is worthy noting that although the interest of the Bank is noted in the insurance policy, the tittle to the policy of insurance remains with the Insured. Should the Insured risk (s) crystallize, the benefits are payable to the account of the Insured with the Bank in accordance with the IPF agreement between the parties.
• The Bank shall only finance premiums for insurance policies that are current and continuing or newly written policies.
• The Bank shall only finance the currently payable premiums.
• There shall be no IPF Application issued for a revolving manner (so as to be relied for successive premiums – a fresh application shall be made in each case).

Repayment Period and Interest Rate
The maximum repayment period on IPF Loans shall not exceed 10 months. The Bank may at its discretion however consider granting IPF Loans for a longer period in view of various considerations such as previous relationship and existence of other securities availed by the Applicant. However, such longer period shall not in any case exceed one year.

Eligibility
The product shall be available to a borrower who is a legal holder of the policy for securing a contract with the Insurer.