NAB Personal Loan Cover

Transcription

1 NAB Personal Loan Cover Product Disclosure Statement Preparation Date: 3 August 2015 Issue No. 1 This Product Disclosure Statement was issued by: MLC Limited ABN AFSL nab.com.au

2 Throughout this Product Disclosure Statement: References to: we, us, our, MLC you, your NAB PDS Are to be read as: MLC Limited as the insurer. both the policy owner (the person who purchases the insurance) and the Insured named in the Policy Schedule. If two people are insured then you are both the policy owners and the Insureds and you refers to you both jointly and individually as the context requires. National Australia Bank Limited Product Disclosure Statement. The definitions section provides more detailed information on some of the features, plus definitions of the terms used. Where you see words with initial capital letters, such as Pre-existing Condition, these words have particular meanings which are explained in the definitions section. The full terms and conditions for the insurance product are contained in the Policy document which is available free of charge. Just call us and we ll send you a copy. If you take out a Policy you will be sent a Policy document. Contents Why buy insurance? 3 About NAB Personal Loan Cover 4 What are you covered for? Life Cover 5 Disablement Cover 5 Critical Illness Cover 5 Involuntary Unemployment Cover 5 How to apply 6 Premiums 6 How to make a claim 7 Additional information you need 9 to know Definitions General definitions 12 Critical Illness definitions 14 Important information MLC Limited ABN AFSL is the insurer and issuer of NAB Personal Loan Cover insurance which has been branded by National Australia Bank Limited ABN AFSL and Australian Credit Licence (NAB). MLC is a wholly owned subsidiary of NAB and is part of the wealth management division of the NAB Group. MLC is the issuer of this PDS and takes full responsibility for the whole of the PDS. Your contract is with MLC. The insurance policy is not a deposit with or a liability of NAB, or any other related bodies corporate of NAB (other than MLC as insurer). MLC is not an authorised deposit taking institution. Neither NAB, nor its related bodies corporate (other than MLC) provide any form of guarantee or accept any liability in respect of this product. In providing this information we haven t taken account of your objectives, financial situation or needs. Because of this you should consider whether the information in this PDS is appropriate to your situation. Registered office: MLC Limited, Ground Floor, MLC Building, Miller Street, North Sydney NSW NAB Personal Loan Cover

3 Why buy insurance? This insurance is designed to help you pay your NAB Personal Loan if something happens to you. You ve worked hard to establish some security for yourself and your family. But, unfortunately, life doesn t always go to plan. What would happen if you couldn t pay your personal loan because you lost your job, suffered a serious Disability or Critical Illness or, worst of all, you were to die? Money will never make up for hardship or replace a loved one. But it can help your family be financially safe and secure if something happens and you re not able to repay your Loan. Things you need to consider when choosing insurance How much insurance do you need? The amount of insurance that s right for you is a personal choice. You ll need to consider a range of factors which may include your: family commitments savings and investments financial commitments income and lifestyle, and age. Is this the right insurance for you? Not all insurances with the same name provide the same benefits. For example, different insurances provided by different companies may cover different illnesses. Or the illnesses may need to be at a different stage of advancement for you to receive payment. Decide what you want the insurance to do for you. Then read the PDS carefully from cover to cover so you understand what the insurance includes and check if it meets your needs. If it doesn t you could be financially disadvantaged if you need to make a claim. We also recommend you talk with a qualified financial adviser. You don t have to have NAB Personal Loan Cover to be approved for a NAB Personal Loan and you may be able to arrange this type of insurance with a different insurer. If you re replacing your existing insurance It s a good idea to compare your existing insurance with the information in this PDS to make sure you don t lose any important benefits. One risk you need to manage is to make sure you don t cancel your existing policy before your new insurance is in place otherwise you may not be insured if something happens. Why NAB Personal Loan Cover No medical examinations You don t need a medical examination. By answering a few simple questions, you can apply for your insurance in minutes. Easy and convenient You can protect your repayments on your NAB Personal Loan until you ve either paid off the Loan or your Policy ends, whichever comes first. (See When will your Policy end? for more information on page 13). If you become Disabled, Critically Ill or Involuntarily Unemployed we ll make your Loan Repayments to your Loan Account each month. And we ll pay a lump sum to your NAB Personal Loan to help pay your Loan Balance if you die. Please read the table on pages 8 and 9, and read the rest of this PDS to understand how this insurance works. Who can apply? You can apply if you re an Australian resident, have a NAB Personal Loan and you re aged 18 to 54 years. If more than one person takes out the Loan, up to two of you can apply to be insured on the same Policy. You don t have to have NAB Personal Loan Cover to be approved for a NAB Personal Loan. When two people are insured on the same Policy If two or more people apply for a personal Loan the insurance can cover two of them and we ll pay one Benefit to cover the Loan. The table below shows how this works. Benefit Life Cover Disablement Cover, Critical Illness Cover and Involuntary Unemployment Cover If two people are insured and: one of you dies we ll pay the Sum Insured (up to $80,000) to your Loan Account and the Policy will end. you both die we ll pay one Life Cover Sum Insured (up to $80,000) to your Loan Account and the Policy will end. one of you becomes Disabled, Critically Ill or Involuntarily Unemployed we ll make monthly repayments to your Loan Account. you both become Disabled, Critically Ill or Involuntarily Unemployed at the same time we ll pay just one Benefit to cover the Loan Repayments. We ll only pay one Benefit at a time. If you re receiving a Benefit and one of you dies, we ll pay your Sum Insured and the Policy will end. Where two people are insured, we re not able to remove one person from a Policy. The Policy must be cancelled and the remaining person will need to take out a new Policy. Conversely, once a Policy is established, we re not able to add another person to the Policy. NAB Personal Loan Cover

4 About NAB Personal Loan Cover All Benefits are paid to your Loan Account once your claim is accepted. NAB Personal Loan Cover is available if you re an Australian resident, aged when your Policy starts and includes: What s included? What does it cover? How does it help with your Loan? How long are Benefits paid? Life Cover A payment is made if you die. A lump sum towards your Loan Balance. Maximum cover is $80,000. Benefit is provided as a single lump sum payment to your Loan Account. Disablement Cover Continuous and total inability to perform work or Activities of Daily Living functions due to injury or illness. An amount to help with your Loan Repayments. Maximum cover is $5,000 per month. Benefits are paid until whichever of the following occurs first: you re no longer Disabled the Loan Balance is repaid you reach your Policy Anniversary following your 65th birthday, or you die. If you die your estate can then make a claim for Life Cover. If you re outside Australia Benefits are paid for up to six months unless you return to Australia and are still Disabled. Critical Illness Cover Critical Illnesses covered are: C a n ce r Chronic Kidney Failure Coronary Artery Bypass Surgery Heart Attack Major Organ Transplant Paralysis St ro ke An amount to help with your Loan Repayments. Maximum cover is $5,000 per month. Benefits are paid for up to 24 months or whichever of the following occurs first: the Loan Balance is repaid you reach your Policy Anniversary following your 65th birthday, or you die. If you re still Disabled after 24 months you can make a claim to receive Disablement Benefits. If you die your estate can then make a claim for Life Cover. Involuntary Unemployment Cover Involuntary Unemployment arising from circumstances outside your control. An amount to help with your Loan Repayments for up to four months. Maximum cover is $5,000 per month. Benefits are paid for up to four consecutive months. You can claim: up to three times during the life of the Policy for a second or third time provided you ve worked continuously in one occupation for at least six months immediately before each subsequent claim. NAB Personal Loan Cover

5 What are you covered for? NAB Personal Loan Cover provides the following types of insurance: Life Cover We ll pay the Sum Insured (up to $80,000) as a lump sum to your Loan Account if you die. Features include: a lump sum to help pay off the Loan the Sum Insured is automatically adjusted to your Loan Balance each year on your Policy Anniversary. You re not covered for: any Loan Repayment arrears (including interest) outstanding for more than two months any accrued interest more than two months old, and any portion of the Loan Balance due to economic costs, penalty interest and statutory charges (if applicable) as defined in your Loan Agreement. Disablement Cover If you re continuously Disabled for more than 30 days we ll make Loan Repayments to your Loan Account (up to $5,000 per month). Once your claim is accepted Benefits begin to accrue from day 31 (following the 30-day Waiting Period). Features include: You re covered for injury or illness Peace of mind anywhere in the world we make Loan Repayments to your Loan Account (up to $5,000 per month) for up to six months while you re overseas. If you return to Australia your Benefit can continue. Any injury or illness must generally be certified by a Registered Medical Practitioner and confirmed by MLC s medical adviser. Critical Illness Cover If you suffer a listed Critical Illness, we ll pay your monthly Loan Repayments to your Loan Account (up to $5,000) until the Loan is repaid or up to 24 months, whichever comes first. Once your claim is accepted Benefits begin to accrue from day 31 (following the 30-day Waiting Period). If you re still Disabled after 24 months you can make a claim to receive Disablement Benefits. Features include: Peace of mind anywhere in the world we make Loan Repayments to your Loan Account while you re overseas.. Critical Illnesses covered are: Cancer Chronic Kidney Failure Coronary Artery Bypass Surgery Heart Attack Major Organ Transplant Paralysis, and Stroke. A Registered Medical Practitioner, a relevant Specialist and our medical adviser must agree that your condition meets the definition for your Critical Illness. In some cases a condition must progress to a certain point before it meets the definition. You can t claim for the same Critical Illness more than once. For more information refer to the Critical Illness definitions section on page 35. Involuntary Unemployment Cover If you were Gainfully Employed and then become Involuntarily Unemployed we ll make Loan Repayments to your Loan Account (up to $5,000 per month) for up to four months, until you are no longer Involuntarily Unemployed or until the Loan is repaid, whichever comes first. Once your claim is accepted Benefits begin to accrue from day 31 (following the 30-day Waiting Period). Features include: Security of knowing you have help with Loan Repayments for up to four months if you become Involuntarily Unemployed Each insured person can make one claim a year and up to three claims over the life of the Policy. To make a second or third claim for Involuntary Unemployment, you must have returned to work for at least 15 hours each week, and have been continuously and Gainfully Employed in one occupation for at least six months. NAB Personal Loan Cover 5

6 How to apply Premiums You can apply online at nab.com.au/insurance or talk with your NAB banker. When will your Policy start? Once your Policy is accepted you ll receive a Policy document, which sets out the terms and conditions of the Policy, and a Policy Schedule outlining the Policy Start Date and the Premium you need to pay. These documents form the basis of your contract with us and you ll need to refer to them if you need to make a claim. We recommend you put them in a secure place together with this PDS. The Policy typically starts one or two days after the Loan is approved. In some circumstances it may be slightly later, due to a processing lag. Be aware that you won t have insurance on the Loan until the Policy is accepted. When will your Policy end? The Policy will be cancelled and your cover will end on the earliest of the following: when you cancel your Policy when the Loan is repaid and the Loan Balance reduces to zero, or you fulfil your obligations under the Loan Agreement when a variation to the Loan is effected resulting in a new Loan Agreement if you receive a reminder letter regarding unpaid Premiums and you don t pay your outstanding Premiums by the due date in the letter when NAB terminates your Loan you reach your Policy Anniversary following your 65th birthday. (Where two people are insured and the second person is younger, the Policy will continue to cover the second person until they reach their Policy Anniversary following their 65th birthday.) the Life Cover Benefit is paid you make a fraudulent claim, or you die. Want to change your mind? You can cancel your Policy at any time by notifying your banker or your nearest NAB branch in writing. Where two people are insured, the request for cancellation must be signed by both people. If you cancel within 14 days of the Policy Start Date, we ll refund any Premiums already paid. If you cancel at any other time we ll refund the unused portion of your Premium less any government fees and charges. The Policy will be cancelled from the date we receive your written notice. How your premium is calculated Your Premium calculation is based on: the Loan Balance the term of your Loan according to your Loan Agreement, and the Loan Repayment. This information is used to calculate your initial Premium and your renewal Premium. The renewal Premium is calculated 55 days before each Policy Anniversary based on the estimated Loan Balance on the date of the next Policy Anniversary. The minimum Premium is $150 pa. Current Premium rates are available on request. They are indicative only and are subject to change. We will tell you what your actual Premium is after each annual review in your annual Policy Schedule. The Premium isn t subject to a Policy fee or GST. Stamp duty and other government charges and levies are already included. If two people are insured, the Premium is the sum of the individual amounts for each person. How you pay your Premiums You can choose to have your Premium charged to your Loan Account or paid from a NAB transaction account. Premiums are charged annually whether added to your Loan Balance or paid from your NAB transaction account. If you haven t paid your Premiums by the date they re due you ll receive a reminder letter. If you don t pay your outstanding Premiums by the due date in the letter, your insurance cover and your Policy will end. Will Premiums change? Your Premium is adjusted on your Policy Anniversary and takes into account any changes to your Loan Balance and Loan Repayments. We may make changes to the Premium rates which could increase or decrease your Premiums. And we may pass on to you any costs incurred when implementing government legislation or fees charged by third parties. Individuals aren t singled out for Premium rate changes. You ll be contacted about any changes at least 30 days before they take effect. Most Premium changes are implemented on the next anniversary of your Policy Start Date following a change, unless we notify you otherwise. These changes will be shown in your updated Policy Schedule. The Premium initially quoted by your NAB banker may be different from the actual Premium in your Policy Schedule if your circumstances change between the time your Premium is initially quoted and when you draw down the Loan, such as if you change the Loan term or amount. NAB Personal Loan Cover

7 How to make a claim If you pay out your Loan early If you pay out your Loan early we ll refund the unused portion of your Premium unless you ve already received a Life Cover Benefit. If the Loan is paid out early while you re receiving a Benefit, no further Benefits will be payable after the date the Loan is paid off. To make a claim call us on ( CLAIM) Monday to Friday between 8.30am and 5.30pm (AEST). You can also us at claims.administration@mlc.com.au or write to us at GPO Box 200, North Sydney NSW Please let us know if you need to make a claim as soon as possible, preferably within 30 days. We can then start working on your claim. Any delay may make it difficult for us to assess your claim and this could impact your Benefit. This doesn t apply if you weren t legally capable of providing information about the claim during that time. You ll need to cover the costs of any supporting evidence, such as medical reports, unless we specify otherwise. Any unpaid Premiums will be deducted from any Benefits you receive under the Policy. When won t a claim be paid? We won t pay a claim as a direct or indirect result of: Life Cover Disablement Cover Critical Illness Cover a Pre-existing Condition suicide or attempted suicide within 13 months of the Policy Start Date being under the influence of alcohol or drugs involvement in criminal activity, or war or warlike operations. a Pre-existing Condition any injury, illness or symptoms contracted within the first 30 days of the Policy Start Date intentional self-inflicted injury or illness being under the influence of alcohol or drugs involvement in criminal activity, or war or warlike operations. a Pre-existing Condition any injury, illness or symptoms contractedwithin the first 90 days of the Policy Start Date intentional self-inflicted injury or illness being under the influence of alcohol or drugs involvement in criminal activity, or war or warlike operations. NAB Personal Loan Cover

8 Involuntary Unemployment Cover being under the influence of alcohol or drugs involvement in criminal activity written or verbal notification of impending unemployment within 60 days of the Policy Start Date war or warlike operations as a result of a Disability for which you ve received Benefits under this Policy your fixed term contract, seasonal or casual work ending you choosing to end your employment your position automatically ceasing under a partnership agreement or law unemployment due to industrial action unemployment due to normal and uncomplicated pregnancy or childbirth becoming unemployed when Employed By Your Family, or your business temporarily ceasing to trade if you re Self-employed or in a business partnership. These examples are illustrative only, and any Benefits you receive would be subject to your claim being accepted by us. What happens if you re overseas? You re protected 24 hours a day, anywhere in the world. You re entitled to Life Cover and Critical Illness Benefits while overseas. For Disablement, we ll make Loan Repayments for up to six months while you re overseas. If you return to Australia after six months the Benefit may be reinstated. Involuntary Unemployment Benefit isn t available when outside Australia. How is a claim paid? Your Benefit is paid directly to your Loan Account. For example: Let s say you have a NAB Personal Loan with an outstanding Loan Balance of $1,500. And your monthly repayment amount is $300. What Benefits would you receive if you made a claim for Disablement, Involuntary Unemployment or Life Cover? For example: If you were Disabled for 150 days and unable to work, your Benefit would be calculated at a daily rate of $10 ($ days) for 120 days (150 days LESS the Waiting Period of 30 days). The total paid to your Loan Account would be $1,200 (120 days X $10 per day). If you only had three Loan Repayments remaining after the 30-day Waiting Period, repayments of only $900 would be paid as the Loan would have been paid after three months. If you were Involuntarily Unemployed for 70 days your Benefit would be calculated at a daily rate of $10 ($ days) for 40 days (70 days LESS the Waiting Period of 30 days). The total paid to your Loan Account would be $400 (40 days X $10 per day). The maximum amount of time you can receive Involuntary Unemployment Benefit is 120 days. So if you were Involuntarily Unemployed for 180 days the maximum you could receive would be $1,200 (120 days x $10 per day). This would be less if the Loan were paid off before the 120 days. If your family had to claim Life Cover Benefit we would pay $1,500 (the outstanding Loan Balance) to your Loan Account plus any interest charges accrued in the 2 months following your death. 8 NAB Personal Loan Cover

9 Additional information you need to know Product changes The information in the PDS may change from time to time. We ll write and tell you about any changes we make that are materially adverse. Any other changes can be seen on nab. com.au/insurance or you can call us on and we ll send you a paper copy of the information. If we decide to discontinue NAB Personal Loan Cover we ll replace your insurance with a Policy providing the same or better Benefits. Your Duty of Disclosure When you apply for a life insurance policy, you have a duty to tell us anything that you know, or could reasonably be expected to know, that may affect our decision to insure you and on what terms. You have this duty until we agree to insure you. You have the same duty before you extend, vary or reinstate the policy. You do not need to tell us anything that: reduces the risk we insure you for; or is common knowledge; or we know or should know as an insurer; or we waive your duty to tell us about. If someone other than you will be the life insured under the policy, any failure by that person to comply with the above duty will be treated as a failure by you. If you do not tell us something In exercising the following rights, we may consider whether different types of cover can constitute separate policies of life insurance. If they do, we may apply the following rights separately to each type of cover. If you do not tell us anything you are required to, and we would not have insured you if you had told us, we may avoid the policy within three years of entering into it. If we choose not to avoid the policy, we may, at any time, reduce the amount you have been insured for. This would be worked out using a formula that takes into account the premium that would have been payable if you had told us everything you should have. However, if the policy provides cover on death, we may only exercise this right within three years of entering into the policy. If we choose not to avoid the policy we may at any time vary the policy in a way that places us in the same position we would have been in if you had told us everything you should have. However, this right does not apply if the policy provides cover on death. If your failure to tell us is fraudulent, we may refuse to pay a claim and treat the policy as if it never existed. Tax The tax treatment of your Policy will depend on your personal circumstances. Please note, that neither NAB nor MLC is a registered tax agent. We recommend you seek professional tax advice from a registered tax agent rather than rely on this general tax information to determine your personal obligations. You can also go to ato.gov.au for more information. Resolving complaints We want our customers to be happy. If you re not satisfied with this product, or the service you ve received so far, we d like an opportunity to put this right. We can usually resolve complaints over the phone. If we can t, or you re not satisfied with the outcome, then please write to us at: Notice of Complaint The Manager MLC Complaint Resolutions PO Box 1086 NORTH SYDNEY NSW 2059 For more information go to mlc.com.au/complaint If you re not satisfied with our decision you can get further advice from the Financial Ombudsman Service by calling or by ing info@fos.org.au More information is available at fos.org.au Privacy notification We respect your personal information This notification tells you how we collect your information, what we use it for and who we share it with. It also points out some key features of our Privacy Policy available at mlc. com.au/privacy MLC Limited is part of the NAB Group, comprising National Australia Bank Limited and its related companies (the Group ) which include all the banking, financing, funds management, financial planning, superannuation, insurance, broking and e-commerce organisations in the Group. We may share your personal information with other Group members. This could depend on the product or service you have applied for and the Group member you are dealing with. How we collect information We ll collect your personal information from you directly whenever we can. Sometimes we collect your personal information from third parties. Sometimes we collect information about you from other sources, for example, from your doctor, medical professionals, medical facilities or health authorities who verify any health information you may provide. NAB Personal Loan Cover

10 Instances of when we may need to collect information from third parties include: where we can t get hold of you and we rely on publicly available information to update your contact details; when we need information from your doctor or medical professional, or your employer, about a claim you have made or your medical history; at your request, we exchange information with your legal or financial advisers or other representatives. You may not be aware that we have done so (for example, when we collect information about you from an investigator) and in such a case if we collect information that can be used to identify you, we will take reasonable steps to let you know of that collection. We may collect information about you because we are required or authorised by law to collect it. There are laws that affect financial institutions, including company and tax law, which require us to collect personal information, for example, we require personal information to verify your identity under Commonwealth Anti-Money Laundering law. How we use your information We use your information to provide you with the product or service you asked for, and for other purposes including: giving you information about a product or service; considering whether you are eligible for a product or service; processing your application and providing you with a product or service; administering the product or service we provide you, which includes answering your requests and complaints, varying products and services and managing our relevant product portfolios; identifying you or verifying your authority to act on behalf of a customer; assisting in arrangements with other organisations in relation to a product or service we make available to you; allowing us to run our business and perform administrative and operational tasks, such as: training staff; developing and marketing products and services; risk management; systems development and testing, including our websites and other online channels; undertaking planning, research and statistical analysis; determining whether a beneficiary will be paid a benefit; preventing or investigating any fraud or crime, or any suspected fraud or crime; as required by law, regulation or codes binding us; and for any purpose for which you have given your consent. We use your information to tell you about other products or services that may be of interest to you, or running competitions and other promotions (this can be via , telephone, SMS, im, mail, or any other electronic means including via social networking forums) unless you tell us not to. You can let us know at any time if you no longer wish to receive direct marketing offers from the Group. We will process your request as soon as practicable. What happens if you don t provide your information to us? If you don t provide your information to us, we may not be able to: provide you with the product or service you want; manage or administer your product or service, for example, assess a claim, or pay a benefit under a policy or product; verify your identity or protect against fraud; or let you know about other products or services from our Group that might better meet your financial, e-commerce and lifestyle needs. Sharing Your Information We may share your information with other organisations for any purposes for which we use your information. We may need to share your personal information at your request for instance, your representative or any person acting on your behalf (for example, financial advisers, lawyers, settlement agents, accountants, executors, administrators, trustees, guardians, brokers or auditors), and your referee such as your employer (to confirm details about you). We may disclose your personal information to third parties (outside of the Group) including: those involved in providing, managing or administering your product or service; authorised representatives of the Group who sell products or services on our behalf; medical professionals, medical facilities or health authorities who verify any health information you may provide; valuers, insurers, re-insurers, claims assessors and investigators; fraud reporting agencies (including organisations that assist with fraud investigations and organisations established to identify, investigate and/or prevent any fraud, suspected fraud, crime, suspected crime, or misconduct of a serious nature); government or regulatory bodies (including ASIC and the ATO) as required or authorised by law (in some instances these bodies may share it with relevant foreign authorities); our accountants, auditors or lawyers and other external advisers; 10 NAB Personal Loan Cover

11 organisations that maintain, review and develop our business systems, procedures and technology infrastructure, including testing or upgrading our computer systems; organisations that participate with us in payments systems including merchants, payment organisations and organisations that produce cards, cheque books and statements for us; our joint venture partners that conduct business with us; organisations involved in a corporate re-organisation or transfer of Group assets or business; organisations that assist with our product planning, research and development; mailing houses and telemarketing agencies who assist us to communicate with you; other organisations involved in our normal business practices, including our agents and contractors; and where you ve given your consent. We will only use and share your sensitive information in accordance with the Privacy Act. Our Privacy Policy Our Privacy Policy is available at mlc.com.au/privacy or by calling and asking us for a copy. (Hearing impaired customers can call TTY ) Contact Us We care about your privacy and welcome your feedback. Please contact us if you have any questions or comments about our privacy policy and procedures. You can contact us by: submitting an online Compliments, Suggestions or Complaints form via nab.com.au calling our contact centre on (Hearing impaired customers can call TTY ). Sharing outside Australia We run our business in Australia and overseas. We may need to share some of your information with organisations outside Australia. Sometimes, we may need to ask you before this happens. You can view a list of the countries in which those overseas organisations are located at nab.com. au/privacy/overseas-countries-list/ We may store your information in cloud or other types of networked or electronic storage. As electronic or networked storage can be accessed from various countries via an internet connection, it s not always practicable to know in which country your information may be held. If your information is stored in this way, disclosures may occur in countries other than those listed. Overseas organisations may be required to disclose information we share with them under a foreign law. In those instances, we will not be responsible for that disclosure. Accessing or Correcting your Information You can ask us to access information or to correct information that we hold about you. You can find out how to access and correct your information by reading our Privacy Policy. Complaints If you have a complaint about a privacy issue, please tell us about it. You can find out how to make a complaint and how we will deal with these complaints, by reading our Privacy Policy. NAB Personal Loan Cover 11

12 Definitions General definitions Activities of Daily Living Means the following groups of activities of daily living: bathing or showering dressing moving from place to place, in and out of bed, and in and out of a chair eating and drinking, or using the toilet. To meet the definition you must be unable to complete two or more of these activities without physical help from someone else. Benefit(s) Means either: The Sum Insured in the event of death, or The Loan Repayment in the event of Disablement, Critical Illness or Involuntary Unemployment. Critical Illness and Critically Ill Means: (a) the first occurrence and subsequent diagnosis, by a Registered Medical Practitioner and relevant Specialist, and confirmed by MLC s medical adviser; of one or more of the following defined Critical Illnesses: Cancer Chronic Kidney Failure (chronic renal failure) Heart Attack Paralysis Stroke or (b) for the following surgical conditions, when the surgery actually happens: Coronary Artery Bypass Surgery Major Organ Transplant See Critical Illness Definitions on page 35 for more detailed information. Disablement, Disability and Disabled The definition of Disablement varies depending on whether you re Gainfully Employed. If you re Gainfully Employed then you ll be considered to be Disabled if, as a result of accidental injury or illness, you re unable to continuously and totally carry out all the normal duties of your usual occupation. If you re not Gainfully Employed then you ll be considered to be Disabled if, as a result of accidental injury or illness, you: a) are unable to do any two or more of the following groups of Activities of Daily Living without physical help from someone else: bathing or showering dressing moving from place to place, in and out of bed, and in and out of a chair eating and drinking using the toilet, or b) have severe cognitive impairment (with a score of 15 or less out of 30 in a Mini Mental State Examination) which leads to a need for continuous supervision to protect yourself or other people. Benefits will only be paid for Disablement if certified by a Registered Medical Practitioner, confirmed by MLC s medical adviser, and while you are not engaged in any occupation or pursuit for earnings, payment or profit. Employed By Your Family Means Gainfully Employed by an employer which is not a listed public company, or a related body corporate of a listed company, and in which an Immediate Family Member of yours is or was either: (a) a director, majority shareholder or partner of the employer, or (b) in control of the employer immediately or within 60 days before you become Involuntarily Unemployed. Gainfully Employed and Gainful Employment Means being in active employment in order to receive remuneration, payment or profit and: (a) you re employed for at least 15 hours per week, and (b) have been employed in one occupation on a continuous basis for the six months or more prior to the date of your Disablement or Involuntary Unemployment. Immediate Family Member Includes your spouse, de facto spouse, parent, child, sibling or grandparent. 12 NAB Personal Loan Cover

13 Insured (you or yours) Means the person or persons named in the Policy Schedule, whose lives are insured under this Policy. Each insured person is also a policy owner. If two people are Insured then you refers to you both jointly and individually as the context requires. Involuntary Unemployment and Involuntarily Unemployed Involuntary Unemployment means a period when you re not working and are actively seeking employment and are registered with Centrelink or any other governmentapproved job placement agency as a job seeker. This period starts on the date you register with a placement agency and continues until you engage in any occupation or pursuit for earnings, payment or profit. Unemployment must be as a result of: the termination of your Gainful Employment by your employer being made redundant from your Gainful Employment by your employer if you re Self-employed or a partner in a business partnership, the business permanently ceasing to trade due to actual or imminent insolvency or business factors beyond your reasonable control and the business being wound up or placed in the control of an insolvency administrator; or if you re a partner in a business partnership, your status as a partner is discontinued without your actual or implied consent, agreement or approval (for example, against your consent you re forced out of the partnership) and you stop working with that business. Loan Means the funds borrowed from NAB by the Insured or Insureds, either with or without other persons, the details of which are included in the Loan Agreement. Loan Account Means the personal loan account maintained with NAB. Loan Agreement Means the contract with NAB for the personal Loan, and any amendments made to that contract from time to time. Loan Balance Means the total amount outstanding on the Loan. Loan Repayment(s) Means the scheduled repayment in accordance with your Loan Agreement. Mini Mental State Examination Means the Mini Mental State Examination (MMSE) test which samples various functions including arithmetic, memory and orientation to assess cognition. NAB Means National Australia Bank Limited. PDS Means product disclosure statement. Policy Means the contract of insurance between you and us which contains the terms and conditions of cover, and consists of the Policy document, Policy Schedule and any future documents that change the contract. Policy Anniversary Means each anniversary of the Policy Start Date. Policy Schedule Means the policy schedule issued for the Policy. It sets out details of the Policy such as the name(s) of the Insured(s), details of the Benefits, the Premium payable and the Loan Amount. Policy Start Date Means the first day the Policy is in force as shown in the Policy Schedule. Pre-existing Condition Means any injury, illness or symptom that first occurred or appeared before the Policy Start Date, or for which you have experienced symptoms or received medical treatment prior to the Policy Start Date which leads to a diagnosis after the Policy Start Date. It s not a pre-existing condition if you weren t aware of the injury, illness or symptom, or could not reasonably be expected to be aware of the injury, illness or symptom. Premium(s) Means the necessary payment by you to maintain cover under this Policy, being either the amount shown in the Policy Schedule or the amount advised in writing to you by us from time to time. Registered Medical Practitioner Means a registered and qualified medical practitioner including a Specialist medical practitioner who is recognised and qualified to provide a diagnosis as a Specialist, who is acceptable to us and is not the Insured or spouse, family member, business partner, employee or employer of, or related to, the Insured. Self-employed and Self-employment Means where you re Gainfully Employed by yourself, an employer which is not a listed public company or a related body corporate of a listed public company, and you are or were either: a director, majority shareholder or partner of the employer, or in control of the employer. NAB Personal Loan Cover 1

14 Specialist Means a Registered Medical Practitioner who is an appropriate specialist in a relevant medical field. Sum Insured Means the portion of the Loan Balance covered by the Policy. This doesn t include: any Loan Repayment arrears (including interest) outstanding for more than two months any accrued interest more than two months old, and any portion of the Loan Balance due to economic costs, penalty interest and statutory charges (if applicable) as defined in your Loan Agreement. Waiting Period Means the initial period of Disability, Critical Illness or Involuntary Unemployment for which we don t pay Benefits. We, us, our, MLC Means MLC Limited as the insurer. You, your Means both the policy owner (the person who purchases the insurance) and the Insured named in the Policy Schedule. If two people are insured then you are both the policy owners and the Insureds and you refers to both jointly and individually as the context requires. Critical Illness Definitions Cancer Means the presence of one or more malignant tumours, leukaemia or lymphomas (including Hodgkin s disease). The following cancers are not covered by this Policy: chronic lymphocytic leukaemia in its early stages (RAI stages 0, 1 or 2) prostate cancer which is histologically described as TNM classification T1 or another equivalent or lesser classification carcinoma in situ (including cervical dysplasia CIN1, CIN2, and CIN3), or pre-malignant tumours. Carcinoma in situ of the breast is included where it leads to the removal of the breast by a mastectomy. The procedure must be performed as a direct result of the carcinoma in situ and specifically to arrest the spread of malignancy, and be considered the necessary and appropriate treatment skin cancer other than melanoma at least 1.5mm thick or at least Clark Level 3 of invasion hyperkeratosis or basal cell skin carcinoma, and squamous cell skin carcinoma unless it has spread to other organs. Chronic Kidney Failure (Chronic Renal Failure) Means the final stage of kidney disease that requires permanent dialysis or a transplant. Coronary Artery Bypass Surgery Means the open heart surgical grafting of a bypass to a coronary artery to overcome narrowing or obstruction. It doesn t include coronary artery angioplasty, cardiac keyhole surgery, laser or other intra-arterial procedures. Heart Attack Means the death of part of the heart muscle because of inadequate blood supply. The diagnosis must be based on electrocardiogram changes and either: higher levels of cardiac enzyme (CK-MB) than normal, or an elevation (other than as a result of cardiac or coronary intervention or angina) of Troponin I in excess of 2.0ug/L (micrograms per litre) or Troponin T in excess of 0.6ug/L. If a diagnosis based on the above criteria is inconclusive, then MLC will consider a claim based on conclusive evidence that the Insured has been diagnosed as having suffered a heart attack, resulting in either one of the following: New pathological Q waves, or A permanent left ventricular ejection fraction of 50% or less, measured three or more months after the event. Major Organ Transplant The transplant of any of the following whole organs from a human donor to you: kidney lung liver pancreas heart, or the transplantation of bone marrow. Paralysis Means the total and permanent loss of the function of two or more limbs caused by damage to the nervous system. 1 NAB Personal Loan Cover

15 Stroke Means the Insured suffers a cerebrovascular event producing neurological sequelae (which lasts at least 24 hours and is likely to persist) and causing at least 25% permanent impairment of whole person function. Such diagnosis requires evidence of: infarction of brain tissue intra-cranial or sub-arachnoid haemorrhage, or embolisation from an extra-cranial source. Transient ischaemic attacks, cerebral symptoms due to migraine, cerebral injury resulting from trauma or hypoxia, vascular disease affecting the eye or optic nerve and reversible ischaemic neurological deficits, are excluded. NAB Personal Loan Cover 15

16 For more information call from anywhere in Australia outside Australia Or visit us at nab.com.au/insurance Or ask at your local NAB branch A