Terms and Conditions of Credit Card Liabilities Insurance

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1 Terms and Conditions of Credit Card Liabilities Insurance Swedbank P&C Insurance AS Terms and Conditions of Credit Card Liabilities Insurance No. KS 0605 in force from 11 June 2015 We want Our Credit Card Liabilities Insurance to offer You support and safety in unexpected events when repaying the credit becomes problematic or impossible. Please carefully read the Terms and Conditions of Credit Card Liabilities Insurance in order to understand Your rights and obligations under the Insurance Contract. Principles of Credit Card Liabilities Insurance We offer comprehensive insurance in the event of Incapacity for Work or Unemployment. You will enjoy a sense of security which will allow maintaining your customary quality of life and an impeccable payment disciple should you run into difficulties in life. The insurance premium is payable only if you have outstanding balance on your credit card. You can receive free advice and notify of occurrence of an insured event by phone at any time (24 hours a day, 7 days a week). Customer service and claim handling: Telephone apdrosinasana@swedbank.lv atlidziba@swedbank.lv Credit Card Liabilities Insurance Contract Insurance Contract is entered into between You and Us whereby the We undertake to pay out insurance indemnity upon occurrence of an insured event, whereas the You undertake to pay the insurance premiums. 1

2 Credit Card Liabilities Insurance Terminology We, Us or Insurer means Swedbank P&C Insurance AS, having its registered office at Liivalaia 12, Tallinn, 15039, Estonia, as represented in the Republic of Latvia by Swedbank P&C Insurance AS Latvian branch. You or Policyholder means the person who is indicated on the insurance policy as the policyholder and at the same time is also the insured. Card Agreement means the agreement between You and Swedbank AS for the use of credit card. Credit Limit means the maximum amount of credit on the Card Credit Account which You are authorized to use under the Card Agreement. Outstanding Balance means the amount of credit You have used in transactions with the credit card under the Card Agreement up until the day when: You fell ill or suffered an accident; You were notified or You learned of loss of Employment. Card Credit Account the account linked to Your credit card where credit has been made available under the Card Agreement. Deductible (Elimination) Period means a period of 30 days after the date of occurrence of each insured event during which the loss incurred in the insured event will not be reimbursed by Us but will be covered by You yourself. Employment means the legal Employment relationship established under an employment contract or work performance contract between You and the Employer (including any mployment with state or local government institutions and the performance of the duties of a management board member), which contract stipulates that the duration of an Employment week is at least 20 hours and that You are paid for the Employment. Physician means a medical practitioner who is licenced to issue sick-leave certificates under applicable legislation in force in the Republic of Latvia. For the purposes of the Insurance Contract, a Physician does not include a person who is a close relative of the policyholder, who lives in one household with the policyholder or who may be regarded as an interested party for other reason. An Earlier Health Condition means any trauma, illness, or symptoms thereof, which have been diagnosed or which were, or should have been, known to You at the time of entry into the insurance contract or in connection with which you had, or had planned, to contact a Physician within 12 months before entry into the insurance contract. 2

3 What is Covered? What is covered? (insured events) Incapacity for Work Your inability to work in your Employment in connection with Your and Your child s accident or illness as confirmed by a Physician with a sickleave certificate. Unemployment Having the status of an unemployed person granted by the Employment State Agency if caused by unexpected termination of Employment upon Employer s initiative or unexpected removal from office in a legal entity s executive management, provided that You have no other valid Employment. Additionally, Unemployment includes cases when you ve lost your Employment due to the aforementioned reasons but the status of an unemployed person is denied by the Employment State Agency because you re receiving state retirement pension prematurely. What is not covered? (exceptions) We will not be under an obligation to pay insurance indemnity if the reason for Incapacity for Work is: an earlier health condition which continues or re-emerges during the first year of the insurance contract; pregnancy or childbirth, except related complications; plastic surgery, medication therapy or surgical procedures not required in the process of treatment; any deliberate action; use of alcohol, narcotics or other prohibited substances; HIV and AIDS; exposure to radiation unless directly related to Your treatment or performance of Your employment duties; acts of terrorism, military action, armed conflicts, mass disorders. We will not be under an obligation to pay insurance indemnity if Employment is terminated: because you have given a notice of termination of Employment; after your retirement; because you ve lost the Employer s trust by acting unlawfully or in bad faith; because temporary or seasonal Employment has ended; due to expiration of Employment contract which was of fixed duration and was not extended; However, we will pay the insurance indemnity if the Employment contract was entered into with one and the same Employer for a period of at least 13 months and you had expressed a wish to continue the Employment. We will pay the insurance indemnity also if you were in Employment of unlimited duration with one and the same Employer but the Employment contract was changed to an Employment contract of fixed duration upon the Employer s initiative. in connection with a criminal case being opened or a court ruling; due to use of alcohol, narcotics or other intoxicants; prior to entry into force of Unemployment cover; or You were aware of the loss of Employment prior to entry into force of the Unemployment cover; and You work under a work performance contract or an authorization contract or as sole proprietor or self-employed person; and You, Your family member or close relative has control over the Employer s actions and decisions as the owner or management institution member of the Employer; due to acts of terrorism, military action, armed conflicts, mass disorders. 3

4 Date of occurrence of the insured event of Incapacity for Work The time of occurrence of the insured event will be the day when the insured is unable to appear at their place of Employment for work due to illness or accident. Date of occurrence of the insured event of unemployment The time of occurrence of the insured event will be the last day of Employment. Exception If You re dismissed from Employment and You are paid severance pay in accordance with legislation in force in the Republic of Latvia, then the insured event will be considered to have occurred after the number of months after the last Employment day equivalent to the number of months (monthly salaries) for which you were paid the severance pay. Example You have been in employment with your Employer for 11 years. As required under applicable legislation, the Employer gave You a notice of termination of Employment contract and paid You a compensation equivalent to three monthly salaries. We will consider the insured event to have occurred 3 months after the last day of Employment. The moment when the Employer advises You of downsizing or the number of redundancies (collective layoff) and this may affect your Employment will be regarded as equivalent to a notice of termination of your Employment being given by the Employer even if the persons to be made redundant have not been named. Entry into Force of Insurance The Incapacity for Work cover shall enter into effect upon entry into the insurance contract, whereas the Unemployment cover shall enter into force: upon lapse of 90 days after entry into insurance contract (this condition does not apply to subsequent insurance contracts entered into consecutively without any interruption); upon lapse of 90 days after commencement of Employment if you are unemployed at the time of entry into insurance contract. What should I do if an insured event occurs? If you believe that an insured event has occurred, please notify Us thereof or ask a person related to you to notify Us of the potential insured event immediately using the following contact information: phone or address: atlidziba@swedbank.lv. We will explain how You should proceed. In order for us to decide on payment or denial of insurance indemnity, We may need additional information. Hence, We may ask You to provide us with the following information and documents: a document issued by the Employment State Agency which confirms the granting or extension of the status of an unemployed person; a document issued by the State Social Insurance Agency which confirms the granting of unemployment benefit; the document on the basis of which the Employment relationship was terminated; the Employment contract with the Employer with whom the Employment is terminated; sick-leave certificate showing the period of Incapacity for Work, as confirmed by the Employer; 4

5 copies of Your medical history documents; Your medical examination documents and information on the results thereof; investigatory and/or judicial institutions formal opinion about the accident and the circumstances of the accident; other documents as may be necessary for Us to decide on the insurance indemnity. Furthermore, We may request information about You from: other insurers and financial institutions (including Swedbank and Swedbank Group companies); National Health Service, Employment State Agency, State Revenue Service, and State Social Insurance Agency; other persons and state institutions in possession of information about the insured event and the related circumstances; Your Physician and medical institutions were You receive Your treatment; Your existing and former Employer and the persons with whom You ve been in a contractual relationship. We have the right to ask for original documents if We have been provided with document copies. Insurance Indemnity We will decide to pay out or deny the insurance indemnity within 5 (five) business days of receiving all the necessary documents. The insurance indemnity will be paid out to your Card Credit Account. If, at the time of payout of the insurance indemnity, you ve already repaid the Outstanding Balance to the bank, then We will pay out the insurance indemnity to Your current account. Insurance indemnity cannot be paid concurrently for an event of Incapacity for Work and for an event of Unemployment. Calculation and Payout of Insurance Indemnity The insurance indemnity will be calculated for each day when the insured event continues, starting from the next day after the end of the Deductible (Elimination) Period. Example The accident happened on 7 April. The Deductible (Elimination) Period is 30 days. Hence, the insurance indemnity will be calculated for the period starting from 8 May. The insurance indemnity will be paid out in parts not more often than once a month. We will make the insurance indemnity payment to the amount of 5% of the Outstanding Balance for each month (30 days). If Your insured event continues for more than 12 months after the Deductible (Elimination) Period, then the last portion of the insurance indemnity will be equivalent to the Outstanding Balance, less any portion of insurance indemnity already paid out. Example Your Outstanding Balance was 1800 EUR. Hence, We will pay You an indemnity of 990 EUR for 11 months (90 EUR for each month), whereas for the 12th month We will pay out 810 EUR to You. The maximum insurance indemnity for one insured event is limited to EUR irrespective of the number of Credit Card Liabilities Insurance contracts entered into by You with Us. 5

6 Discontinuation or Denial of Insurance Indemnity Payment The payout of insurance indemnity for one insured event will be discontinued if: We have paid You an amount equivalent to the Outstanding Balance; You have regained Capacity for Work (the sick-leave certificate has been closed). The payment of insurance indemnity will be discontinued as from the first day when You have returned to work in your Employment; You have found Employment. The payment of insurance indemnity will be discontinued as from the first day when Your Employment commences; However Payment of insurance indemnity will continue if you find temporary or seasonal Employment during the period when monthly insurance indemnity payments are made, provided that the duration of such Employment is not more than 3 months. We are entitled to deny payment of insurance indemnity if: You have failed to perform Your duties under the insurance contract; You have supplied Us with misleading information or data in claiming the insurance indemnity; In such an event We are entitled to discontinue payment of the insurance indemnity and to demand that You repay any insurance indemnity already paid out, as well as to immediately terminate the insurance contract and keep any insurance premiums received from You. If You re not Satisfied If you are not satisfied with the services provided by Us, We kindly ask You to let Us know about it. We hope we will be able to find a solution that satisfies both parties. If you disagree with any decision We have made or You would like an additional explanation, You have the right to seek review of the decision by sending Us Your reasoned opinion. We will give You Our reasoned reply to Your opinion within 30 (thirty) days of receiving Your written request. If resolution of the dispute through negotiation fails, you have the right to seek protection of your interests in the Latvian Insurers Association s Ombudsman ( the Consumer Rights Protection Centre ( Finance and Capital Market Commission ( or court of law according to applicable legislation in force in the Republic of Latvia. 6