Credit Shortfall (HCVs, Trailers, Buses, LDVs, PMVs, Motorcycles and Special Types – Plant all risk and farming equipment)
Credit shortfall insurance settles any shortfall owed to the Financier under a current instalment sale or lease agreement. A legally enforceable Credit Agreement as defined in the the National Credit Act 34 of 2005 as amended, entered into by The Insured with the Finance Company in respect of the Insured vehicle and specified in the Policy Schedule. This will occur if your vehicle is stolen or written off, less any arrears installments or interest payable on arrears, refunds of premium for cancellation of any insurance and first amount payable. Residual payments due under the final installment and any re-financed payments will not be covered.