A reader in Dubai asks: In case of losing my job due to termination am I covered by the insurance policy in my personal loan? The bank includes an insurance fee on personal loans so do I have a legal claim for the insurance to pay my loan balance in case of losing my job?
Answering such questions requires viewing the insurance policy on loans; if the contract includes a condition that in case the debtor loses his job he will be released from the debt, then it might be OK. But, we suspect that fact, as mentioned by the questioner, because according to our knowledge, there are some banks who waive about only 1 per cent in case the debtor loses his job or if he becomes incapable of continuing payment due to urgent reasons.
Questions answered by Advocate Mohammad Ebrahim Al Shaiba of Al Bahr Advocates and Legal Consultants.
Ask the law queries
Send us questions on legal issues that need clarification.
Write to us at letter2editor@gulfnews.com
