Banks and insurance companies have agreed to offer joint services to consumer

Insurance is no more restricted to the business of covering risks and paying for the damages to the insured in accordance with policy terms and conditions, premiums paid and other factors. However the insurance sector is in itself diverse in nature. Needless to say the companies in this sector are also looking at other venues and prospects for more opportunities.

In this connection the leading insurance giants of Malta have conceded to the tie up. requested by Bc bank Malta and have come forward to collaborate and offer personal loan credit insurance. This insurance is said to be advantageous in many aspects. The way in which it works is quiet interesting. The outstanding amount which a debtor is required to pay as monthly installments are covered by the insurance company. This Plan is framed in such a way that it covers losses on accounts of accident, sickness, involuntary unemployment or death.

The officials of the bank are highly optimistic on the success of the plan. In many instances they say that a person is not able to repay a loan or settle debts just due to reasons other than finance. Having kept this in mind the bank has designed the whole program. Now as per this proposal the borrower need not even worry if things go beyond his control. The reason is that the insurer will pay his dues.

Just like an insurance company's policies this is also offered under many modes. The insured is free to choose his option. Some of the most popular options that are available include complete life, accident, sickness and unemployment insurance. As per this agreement different insurance companies have been roped in for various sectors. For instance risks of life are covered by HSBC Life Assurance (Malta) Ltd while accident, sickness and unemployment is covered by Elmo Insurance Ltd. This is done in tie up with Atlas Insurance PCC Ltd, Citadel Insurance plc and GasanMamo Insurance Ltd who have agreed to be co insurers.

There are many other advantages of this scheme. It is very flexible and helps the consumer in many ways.