alcohol abuse can cost you dearly

In the event of a serious accident under the influence of alcohol, your mortgage insurance may not cover the repayment of the monthly loan payments. The warranty exclusions are more or less strong depending on the contracts. This is what emerges from a recent study by the Financial Sector Advisory Committee.

Holder of a mortgage, are you really well covered by your borrower insurance? The guarantees of this insurance, which covers the risks of non-repayment of the loan in the event of the occurrence of certain uncertainties of life such as death, disability or incapacity for work of the insured, often depend on the signed contract.

In a study published on December 21, the Financial Sector Advisory Committee (CCSF) asked the firms Actlior and Minalea to analyze, based on their general conditions, 55 banking and alternative group contracts, offered by the main insurers on the market. Alternative contracts include those of insurers other than banks, but also internal alternative contracts. Indeed, when a customer refuses the group contract of the bank to turn to an alternative insurer, the banking institution can offer a cheaper contract to keep it.

Very uneven alcohol coverage

The CCSF looked on the issue of exclusions from the various contracts, particularly on the issue of alcohol. Indeed, what happens in the event of an accident related to drunkenness? According to the study, everything depends above all on the actor with whom you have taken out your contract. The contracts of the banking groups are those which cover the best. Indeed, the majority of offers do not provide for no exclusion of coverage in the event of a claim under the influence of alcoholespecially in case of dcs.

Fatal accidents due to drunkenness, de facto activating the death benefit, are thus covered by 100% of the contracts. Under certain conditions, however. There are exclusions on this subject in certain contracts, confirms Christophe Boich, director of insurance at Meilleurtaux and member of the CCSF. The insurance code says that anything illegal cannot be insured. On this question, however, the answer is not very clear. So, 36% of bank insurers and 33% of alternative insurers do not cover accidents in the event of drunken driving of a motor vehicle. In the event of a car or motorcycle accident in a state of drunkenness, it is therefore impossible to win the case with these insurers.

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Broader disability exclusions

The exclusions of the alcoholic state are on the other hand broader in the event of invalidity, notes the report of the CCSF. At first glance, one might think that 100% of contracts cover the insured in the event of total incapacity for work (ITT). But look more closely, to be compensated is impossible in 66% of contracts with alternative insurers in the event of drunk driving of a land vehicle. And this figure even rises to 100% for the alternative contracts offered by the banks.

Concerning permanent partial incapacity (IPP), the majority of contracts (6 out of 10 approximately) put in place an exclusion from the consequences of the state of intoxication, whatever the situation.

It is therefore better to be careful when signing your borrower insurance contract. Since September 1, 2022, thanks to the Lemoine Law, if you feel you are not covered enough, you can decide to change your contract at any time, without waiting for its anniversary date.

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