Common use of Death or Permanent Disablement Clause in Contracts

Death or Permanent Disablement. We will indemnify You to cover the monthly loan installment amount due and payable under your Mortgage Loan Agreement as a consequence of Accidental Death or Permanent Disablement (occurring within twelve (12) calendar months from the date of Accident) up to a maximum of six (6) monthly installments or the remaining loan balance or the maximum indemnity limit based on the Plan selected, whichever the lowest. Any payment made under this section shall reduce the yearly Sum Insured by that amount from the date of Accident until the expiry of the Policy Year. The yearly Sum Insured will apply in full again upon commencement of the subsequent Policy Year. In the event a total of one hundred per cent (100%) of the yearly Sum Insured is paid during a Policy Year, all coverage under this benefit shall immediately cease to be in force for the same Policy Year. Benefits above are subject to the following: (a) Where the Building which is the subject matter of the mortgage loan agreement is purchased under joint names with more than one (1) person, each of the persons shall be entitled to an equal proportion of the Sum Insured. In the event of Accidental Death or Permanent Disablement of one (1) of the person, the claim payout shall be on a proportionate basis. (Applicable for benefit (iii) only) (b) The coverage shall immediately cease to be in force once the mortgage loan is fully paid. (c) This coverage will cease to apply in the event You dispose the Building which is the subject matter of the mortgage loan agreement. (d) The coverage (iii) is not applicable for company registered owner. (Applicable for SECTION IV - HOMEFIX) We shall compensate You the cost incurred for the events below occurring during the Period of Insurance: