In the event of a vehicle being stolen, hijacked or damaged to the extent that the vehicle is written-off, CIB Insurance Solutions has announced Vehicle Credit Shortfall insurance, which covers the insured for the outstanding balance owed on the vehicle.
Credit Shortfall insurance can be included at an additional premium to vehicles covered within either a personal or commercial lines policy and covers the insured for up to R200 000. Cover will be provided for the amount required to settle the outstanding balance owed on the vehicle. The settlement balance is defined as the payment due at any specific date that would settle the actual debt owing to the finance company.
"CIB are thrilled to be able to offer Vehicle Credit Shortfall insurance as an addition to our motor policies, as it allows our brokers to offer their clients an additional benefit to existing and future CIB motor policies" says Jonjon Smit, National Sales Manager for CIB Insurance Solutions. "The thought of having to pay for a vehicle that is no longer in your possession is quite a daunting one. With CIB's Credit Shortfall cover, the financial burden of funding a replacement vehicle will be alleviated".
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