Tunisia: Insurers sign pact with lenders to resolve life insurance issues
Source: Middle East Insurance Review | Jul 2018
The Tunisian Federation of Insurance Companies (FTUSA) has signed an agreement with the Tunisian Association of Banks and Financial Institutions (APTBEF) on life insurance taken up in connection with credit extended by lenders.
The agreement, signed in mid-May, deals with a sensitive area and aims to resolve a major failure observed in the application of life insurance contracts to a loan.
Under such insurance covers, in the event of the death of the insured, the insurer is required to cover the unpaid loan balance of the insured.
However, in several cases, there has been some discrepancy between the effective period of the life insurance contract and the duration of a loan or credit, due to the lack of coordination between the insurer and the lender. For example, the grace period offered by lenders is often not covered by the policy.
An important part of the agreement between insurers and lenders is the decision to create a mediation commission to resolve conflict through dialogue and agreement.
Mr Ahmed El Karm, president of the APTBEF said the agreement will help the various parties to work with maximum efficiency, while drastically minimising conflict between financial institutions and their clients.
For his part, FTUSA president Lassaad Zarrouk explained that the main purpose of the agreement is to improve services and benefits for policyholders. M