UAE – Life Insurance as a condition for personal loans
Saturday, 08 27 2016, Category: Insurance and Reinsurance, Country: U.A.E
A number of customers said that their banks compelled them to obtain life insurance amounting to 1% of the personal loan amount in addition to transaction fees of 1% of AED 10 thousand whichever is the lower under the scope of personal loan system issued by the Central Bank.
They confirmed to “Emarat Al Youm” that 1% is a large amount if we have to add transaction fees, indicating that these banks do not deliver a proof of insurance in case of death as an official document or the name of insurer or any serious insurance documents.
Source: Emarat Al Youm