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National Australia Bank has launched a range of low-cost general insurance products to help protect people on low incomes.
Step UP Insurance, which includes home and motor vehicle cover, is another component of NAB's $30 million commitment to supporting Australians who have the desire to get ahead but are financially marginalised.
Developed in conjunction with insurance provider, Allianz, the products will be available to people who have a NAB Step UP Loan - the safe, low interest loans of up to $3000 established for personal or domestic purposes such as home or car repairs.
NAB Chief Executive Officer Australia, Ahmed Fahour, said Step UP Insurance is a vital part of NAB's work in the community and fills a big gap in the range of financial products available for the financially disadvantaged.
"We know that a large number of people on low incomes are uninsured. But ironically, many people in this sector simply can't afford to suffer life's unexpected setbacks without the protection of insurance.
"This latest product offers insurance cover to people who may have only ever viewed it as an optional item rather than a necessity.
"At NAB, we are committed to backing people through the delivery of a range of financial services.
"This is a significant step. It's clear that for many people the consequences of a loss while being uninsured are serious.
"The launch of Step UP Insurance is a move towards alleviating this situation," he said.
Customers with an approved NAB Step Up Loan can call 03 9601 7080 to obtain a free quote for Step Up Insurance.
Step UP Loans, which are jointly developed by the Good Shepherd Youth and Family Service, are currently offered in selected areas within New South Wales, Victoria, South Australia and Western Australia.
NAB will not receive commissions or any other remuneration from Allianz for introducing customers to Step UP Insurance, while Allianz will offer the insurance to eligible customers at discounted rates.
Step UP Insurance product features
Allianz Vital Home Insurance**
Cover will include the following entitlements:
- new for old replacement on most items regardless of age;
- temporary accommodation if the home becomes uninhabitable due to an insured event such as fire; and
- up to $2500 cover against the fraudulent use of a lost or stolen credit/ATM card.
Allianz Comprehensive Motor Insurance**
Cover will include the following entitlements:
- choice of repairer;
- a rental car (if the vehicle is stolen) until the vehicle is found undamaged, repaired or a claim is settled, up to a maximum of 14 days; and
- reimbursement for the cost of emergency repairs up to $350.
Allianz Third Party Property Insurance** (including Third Party Fire & Theft cover)
Cover will include the following entitlements:
- up to $20 million to cover the loss or damage to other people's property if at fault in an accident;
- loss or damage to the vehicle up to $3000 arising from an accident caused solely by the driver of an uninsured vehicle (conditions apply);
- up to $20 million legal liability for loss or damage to someone else's property while using a substitute vehicle (conditions apply).
The premium for home and contents and motor insurance can be paid by fortnightly or monthly instalments at no extra premium cost or on an annual basis.
Step UP Loans
Step UP Loans is a not-for-profit NAB loan developed with Good Shepherd Youth and Family Service. These personal, unsecured loans are between $800 and $3000 for individuals and families living on a low income and are offered at a basic interest rate of 6.99%p.a. (comparison rate 6.99% p.a.)*.
The loans provide affordable credit for the purchase of essential personal, household and domestic goods and services (eg. refrigerators, washing machines, medical expenses, cars and car repairs, computers).
Repaying a Step UP low interest loan establishes a credit rating and an entry into the mainstream credit system. Recipients are 'mentored' by a microcredit worker throughout the loan process and repayment period.
*Terms and conditions apply. Refer to the Product Disclosure Statements available on the 'Banking products and loans' section of our Community pages at www.nab.com.au.
** Terms, conditions, limitations and exclusions apply to these insurances - please read the relevant Policy Document (Product Disclosure Statement) [PDS] for details of the insurance cover provided by that product.
Step UP Insurances are provided by Allianz Australia Insurance Limited ABN 15 000 122 850 AFSL 234708 (Allianz) of 2 Market Street, Sydney NSW 2000. Information about each Step UP Insurance product is contained in the relevant PDS a copy of which is available upon request by phoning the NAB Personal Loans Operation Team on (03) 9601 7080 or on www.nab.com.au. Persons should consider the relevant PDS before making any decision about whether to acquire or continue to hold the product. Applications for insurance are subject to eligibility. Neither National Australia Bank Limited ABN 12 004 044 937, nor any other member of the National Australia Bank Group of companies, guarantees or accepts liability in respect of these insurances issued by Allianz.
Media Notes:
1. For more information about NAB's community banking products and loans, visit www.nab.com.au/community
Ends
For further information, please contact:
Geoff Lynch
NAB Head of Media Relations Australia
Tel: (03) 8634 1564
Mob: 0405 318 819
Jonathan Rose
Media Relations Australia
Tel: (03) 8634 8250
Mob: 0417 369 356
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