The risk of loss of employment policy covers the residual debt to Capitalfin in the event of insolvency following the definitive termination of the contract of employment, whatever the cause, except for death. Therefore, in the event of termination of employment, the insurance company settles the remaining debt in favour of Capitalfin.
In the event of termination of employment, the amount of the outstanding debt will be covered by the TFR. If this is insufficient, the insurance company will pay the remaining indemnity to Capitalfin with subsequent recourse to the client for the liquidated sum. Indeed, when the client signs a contract for a salary-backed loan he irrevocably binds, in favour of Capitalfin, the TFR and any other emolument owed to him for termination of employment, as well as the end-of-service allowance set aside with INPS and the sums set aside with pension funds.
The intervention of the insurance company, in the event of loss of employment, means that it takes over the lender’s (Capitalfin’s) credit rights, which allows the insurance company to seek recourse against the client to recover the sums paid to Capitalfin as compensation for the remaining credit.
Upon occurrence of the event, Capitalfin acts as foreseen in the agreement with the insurance company in order to recognise the indemnity (e.g. negotiate a return plan with the Client, check whether the Client has found a new job, etc.).
