Ulster and KBC Bank customers warned of losing insurance coverage

CUSTOMERS of Ulster Bank and KBC Bank have been warned to ensure they don’t have insurance coverage or problems with their retirement days before the banks start freezing customer accounts.

nsurance Ireland said there is a risk that customers of the exiting banks will forfeit direct debits for insurance policies if they don’t act.

It comes as Ulster Bank said it would freeze thousands of checking and deposit accounts from this Friday.

Insurance Ireland said the departure of Ulster Bank and KBC Bank could impact insurance and pension schemes if they are set up to pay by direct debit.

Customers of the two banks must act now and provide updated direct debit mandates for all relevant insurance policies to ensure associated benefits are not interrupted or forfeited, the insurance industry advocacy group said.

Moyagh Murdock, Chief Executive of Insurance Ireland, said: “To ensure policies continue uninterrupted, Ulster Bank and KBC customers need to act urgently and update direct debit mandates for all their insurance products to their new bank account.”

She said customers run the risk of losing insurance coverage when a policy expires.

“It may not be possible to reinstate an expired policy with the same terms. It may need to be treated as a new policy, meaning consumers risk losing benefits built up over time,” Ms Murdock said.

“There are many potential implications of expired policies. For example, car insurance is a legal requirement to drive and the consequences of an uninsured collision are very serious.

“A lapsed home insurance policy could have a huge financial impact in the event of a fire or storm.”

She said when health insurance expires, there is a risk that people will lose coverage for pre-existing conditions and will have to wait longer.

“You could also be responsible for additional Lifetime Community Rating loading fees, which can be very high if you don’t get health insurance 13 weeks after canceling the policy,” Ms Murdock said.

Insurance Ireland said when it comes to life insurance terms, these policies depend on health at the time of taking out.

The risk increases with age, so that a new contract can become more expensive due to unpaid premiums.

Customers of the two exiting banks who receive a periodic payment from an annuity provider will also need to contact their insurer or annuity provider and provide updated bank account details so payments can continue without interruption.

Many insurance and annuity providers have dedicated web pages and online forms on their websites to assist their affected customers and guide them through the transfer process for their direct debits.

Insurance companies have written to customers to remind them of the need to change their dates to avoid a potential loss of insurance, Ms Murdock said.

“If you find that your policy has expired unintentionally, please contact your insurer or broker immediately,” she said.

Once the updated direct debit mandate is received, the provider will be able to update your policy payment information.

However, it may take up to 14 days for these changes to be processed.

https://www.independent.ie/business/personal-finance/insurance/ulster-and-kbc-bank-customers-warned-about-risk-of-losing-insurance-cover-42130478.html Ulster and KBC Bank customers warned of losing insurance coverage

Fry Electronics Team

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