BNP Paribas Cardif Life Insurance, the Korean subsidiary of BNP Paribas Cardif, the insurance arm of BNP Paribas, announces that it will launch ‘Shinhan Capital Loan Relief Service’ in partnership with Shinhan Capital accelerating its effort to expand Credit Protection Insurance in the Korean market tomorrow (April 1).
The new service will be available for borrowers of Shinhan Capital, who sign up for an installment loan when they purchase a commercial vehicle (e.g. trucks, special vehicles for construction, etc). BNP Paribas Cardif Life Insurance’s ‘(NP) The Safe Credit Protection Group Insurance’ will pay off the outstanding loan balance if policyholders pass away or are diagnosed with total permanent disability of 80% or more, a state in which they are not capable to repay their debts.
‘(NP) The Safe Credit Protection Group Insurance’ will provide financial protection for up to five years after subscription and a credit line up to KRW 50 million. The insurance premium of this service will be fully covered by Shinhan Capital.
Customers can easily subscribe to this credit protection insurance service free of charge, by simply filling out an application form when they sign up for the loan with Shinhan Capital.
Credit Protection Insurance is an insurance product which pays off the policyholder’s outstanding loan balance if the policyholder passes away or is diagnosed with total permanent disability of 80% or more. The insurance provides financial security not only to the policyholders and their families but also to the financial institutions by relieving them of risks of bad loans. This kind of product is widely available in many advanced markets including Europe and Japan.
Sung-woog Choi, Chief Sales Officer of BNP Paribas Cardif Life Insurance, said: “BNP Paribas Cardif Life Insurance is dedicated to providing more premium insurance products to meet the different needs in the market. We believe there is a great potential in the credit protection insurance market and are pleased that this product launch in partnership with Shinhan Capital helps extend our offering to the lender and its loan borrowers. In this time, we provide this service with some Shinhan Capital’s loan services, but we will seek ways to reach more customers by extending this service to other loan services of Shinhan Capitals.”
BNP Paribas Cardif Life Insurance was the pioneer in Korea in introducing Credit Protection Insurance to banks and credit card firms in 2002 and 2004 respectively. Last year, it expanded the offering to customers who purchase Renault Samsung vehicles via RCI financial services and to borrowers of Shinhan Savings Bank and Hyundai Savings Bank.