Glossary

Cessation of self-employed activity

  • The Insured ceases his/her self-employed or business activity for financial reasons. Financial reasons include e.g. negative income over the previous six months.
  • The Insured does not perform any other activity requiring obligatory payment of social insurance contributions.
  • The Insured is registered as unemployed and actively seeking work.

Disability

You are considered to be suffering from disability if, after an illness or accident, you are temporarily incapable of performing your normal professional activity and are not seeking alternative work. At the end of the qualifying period your Payment Protection Insurance will pay the agreed monthly insured amount in accordance with the General and Particular Insurance Terms and Conditions throughout the uninterrupted period of disability.

No-fault unemployment

  • The unemployment must be the consequence of termination of employment by the employer, or of a mutually agreed termination of the employment contract in order to avoid an action for wrongful dismissal, or of redundancy.
  • The Insured does not perform any other activity requiring obligatory payment of social  insurance contributions.
  • The Insured cannot be proved to have provoked the termination.
  • The Insured has been registered as unemployed, is in receipt of unemployment benefit, and is actively seeking new employment.

Payment Protection Insurance (PPI)

Payment Protection Insurance or PPI (also known as residual debt insurance) insures the borrower and his/her heirs against death, accidental death, disability and/or unemployment to the extent of the selected insurance cover. If the borrower dies during the period of cover, the PPI will (depending on the policy terms and conditions) repay some or all of the outstanding loan and so prevent the borrower’s heirs from getting into debt. Should the borrower be subject to disability or unemployment, the PPI will pay the agreed monthly amount.

Qualifying period

Immediately after the occurrence of the insured event there is a period known as the qualifying period, during which indemnities are not payable. In other words, there is an indemnity-free period between the occurrence of the insured event and the start of payments under the insurance policy. This period may be bridged by e.g. continued payment of salary, or by drawing on a reserve fund.

Revocation

The Insured may revoke his/her PPI proposal within a period of 30 days. For details, please refer to your Insurance Terms and Conditions.

Termination of insurance contract

The insurance contract will normally cover the originally agreed period. For possible termination before the end of this period, please refer to your Policy Terms and Conditions.

Unemployment – for Employees

  • The unemployment must be the consequence of termination of employment by the employer, or of a mutually agreed termination of the employment contract in order to avoid an action for wrongful dismissal, or of redundancy.
  • The Insured does not perform any other activity requiring obligatory payment of social  insurance contributions.
  • The Insured cannot be proved to have provoked the termination.
  • The Insured has been registered as unemployed, is in receipt of unemployment benefit, and is actively seeking new employment.

Waiting time

The waiting time is a period defined in the policy terms and conditions. It begins when a policy is taken out to cover individual insured risks (e.g. unemployment). During this period the relevant risk is not covered by the insurance. This means that you cannot claim any indemnity if the insured risk materialises during this period.