Loan Insurance Contract Policy As A Legal Means To Protect Debtors Of Financial Institution In Cameroon

Law

Since human wants are unlimited in supply, It has become a common phenomenon for customers to rely on financial Institutions to accomplish their dreams of owning a house, lands, businesses, cars or any other necessities of life. In complaisance with the pleasure of such new acquisitions goes the liability of the loan which many times is quite burdensome but unavoidable to debtors in Cameroon. As a result, loan insurance contract policy has acted as a legal means to protect debtors in Cameroon. This Policy has been designed by insurance companies in Cameroon as a means to relieve debtors of that stress by covering three fortuitous events that may happen in life namely, Critical Illness, Personal Accident and Loss of employment, which can cause a severe blow to the normal life of a debtor. Structured as a benefit contract policy by insurance companies in Cameroon, this policy provides for payment of the benefit amount which normally is equivalent to total amount of loan or the loan outstanding as on the date of occurrence of the covered event.

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