How To Make A Consumer Credit Insurance Claim

Information verified correct on October 24th, 2016

Find out how you can make a credit insurance claim when you have a credit contract you cannot repay. Understand that you must always read the fine print before signing for such insurance so that you are confident of being covered if things go wrong.

A consumer credit insurance claim happens when you cannot make your repayments on a credit contract due to illness, accident, unemployment or death. It is not compulsory to take out this insurance, but you can be made to feel pressured into doing so. If you do decide to take out credit insurance you should compare the market before deciding what cover to take. It may seem easier to take it with the credit provider, but they may not be the cheapest.

Making a consumer credit insurance claim means that a worst-case scenario has occurred. For that reason, you will not want any added hassle with a related insurance claim. It is therefore crucial that you read the fine print with such insurance, and make sure it will provide sufficient cover for any eventuality you can envisage. There has been a great deal of controversy surrounding credit insurance in the UK in recent years, with many insurers being forced to repay customers who had been mis-sold unnecessary and wholly inadequate cover.

Making a credit insurance claim

If you do have credit insurance and you need to claim, here is the procedure:

  1. Read the policy to make sure you are covered.
  2. Get a claim form from the insurer as soon as you realise that your loan repayments cannot be made.
  3. Fill in the claim form, plainly stating that you fulfil the necessary criteria. If you are claiming for a total inability to work through disablement, state this clearly on your form and make sure it is backed by a medical certificate that states the same.
  4. Lodge your credit insurance claim with the insurance provider, including all related information and documents, such as medical proof of your illness/accident.
  5. Keep copies of everything for your records.
  6. Let your lender know that you cannot make your repayments and that you have made a credit insurance claim to cover them. Ask that they freeze your repayments and any legal enforcement action until you receive a decision on your claim. If they agree, ask for this to be confirmed in writing.
  7. Chase up the credit insurance claim after two weeks if you have not had any response.

If your credit insurance claim is refused

In this case, you will need to speak to the insurer and ask on what grounds you have been refused. Do they require some extra information, or something clarifying? If you believe there are any more details you can provide to help your claim, then you should forward this to the insurer.

You can also make a complaint to the IEC or FICS. Any such complaint to the IEC must be lodged within three months of having your credit insurance claim refused. There is no such requirement with the FICS, but logic will dictate that you should try and get your claim reviewed as soon as possible, especially if the lender is talking about legal action to recover your debt.

If you are in any doubt about how to proceed with a credit insurance claim, you should take some legal advice yourself.

Was this content helpful to you? No  Yes

Related Posts

Ask a Question

You are about to post a question on

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Disclaimer: At we provide factual information and general advice. Before you make any decision about a product read the Product Disclosure Statement and consider your own circumstances to decide whether it is appropriate for you.
Rates and fees mentioned in comments are correct at the time of publication.
By submitting this question you agree to the privacy policy, receive follow up emails related to and to create a user account where further replies to your questions will be sent.

Credit Cards Comparison

Rates last updated October 24th, 2016
Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee
Virgin Australia Velocity Flyer Card - Balance Transfer Offer
Enjoy a 0% p.a. balance transfer offer for 18 months and also earn 2 bonus Velocity Points in the first 3 months on everyday spend.
20.74% p.a. 0% p.a. for 18 months $64 p.a. annual fee for the first year ($129 p.a. thereafter) Go to site More info
ME Bank frank Credit Card
Enjoy a low and consistent interest rate on purchases and cash advances, combined with no annual fee.
11.99% p.a. $0 p.a. Go to site More info
HSBC Platinum Credit Card
Receive a full annual fee refund and save $149 if you meet the $6,000 spend requirement. Enjoy a balance transfer offer and platinum card benefits such as complimentary insurances and concierge services.
19.99% p.a. 0% p.a. for 15 months $149 p.a. Go to site More info
NAB Low Rate Credit Card
The NAB Low Rate Card offers 0% p.a. on purchases and balance transfers for 15 months. This card also comes with a low annual fee.
0% p.a. for 15 months (reverts to 13.99% p.a.) 0% p.a. for 15 months with a one off 3% balance transfer fee $59 p.a. Go to site More info

* The credit card offers compared on this page are chosen from a range of credit cards has access to track details from and is not representative of all the products available in the market. Products are displayed in no particular order or ranking. The use of terms 'Best' and 'Top' are not product ratings and are subject to our disclaimer. You should consider seeking independent financial advice and consider your own personal financial circumstances when comparing cards.

Ask a question