Automatic Debt Protection Sample Clauses
The Automatic Debt Protection clause is designed to safeguard a party’s interests in the event that the other party incurs or is subject to certain types of debt. Typically, this clause triggers specific protections or remedies automatically if a party defaults on a loan, becomes insolvent, or faces bankruptcy proceedings. For example, it may allow the non-defaulting party to accelerate payments, demand collateral, or terminate the agreement. Its core function is to proactively manage credit risk and ensure that parties are not unduly exposed to financial instability caused by the other party’s indebtedness.
Automatic Debt Protection. (Graphite Credit Cardholders do not qualify for Automatic Debt Protection and Top-up Debt Protection).
29.1.1 You will receive Automatic Debt Protection cover, an embedded value- add service which provides cover against the outstanding balance or the maximum specified amount,whichever is the lesser, on your credit card facility at the time of your death or permanent disability, subject to the following conditions: • We must receive satisfactory proof of your death or permanent disability within (6) six months of the event; • We will not waive any amount owing to us that is greater than two thousand Rand(R2000) for “Classic” (Silver) cardholders, five thousand Rand (R5 000) for “Gold” cardholders, twelve thousand Rand (R12 000) for “Platinum” cardholders and one thousand Rand (R1 000) for “Standalone Petro Card” holders;
29.1.2 We will not waive any amount: • If your illness, bodily injury, physical defect, ill-health or any other incident or condition that played an important role in your death or disability claim which arose during the 12 months before opening your account. • If the claim is in any way due or can be traced to, or arises directly or indirectly, entirely or partially, from: • The driving of any vehicle while you were under the influence of intoxicating liquor/alcohol or a drug having a narcotic effect or if your blood alcohol levels exceeded the legal limit. • Suicide within the first 24 (twenty four) months of the agreement, self- inflicted injury or self-inflicted illness (i.e.that you caused yourself), whether you intended to do so or not, or if you exposed yourself to danger or obvious risk of injury at your own free will. • Intentionally consuming an excessive amount of alcohol, drugs, or narcotics unless this was prescribed by a medical doctor. If the substance was, however, prescribed to treat drug abuse, it will also be excluded. • Participating in a criminal act. • Involvement or participation in any war, invasion, acts of foreign enemy, hostilities (whether war is declared or not), civil war, mutiny, rebellion, usurped power, riot, civil commotion or disorder. • If your account is not in good standing because it has an unacceptable arrears status as at the date of your death or the event causing permanent disability, i.e. if you have not paid two or more monthly premiums owing on your credit card. • If this agreement and/or your right to use the credit card and/or your credit card facility ends; and/or • If at the date of your dea...
Automatic Debt Protection. 31.1.1 You will receive Automatic Debt Protection cover, as an embedded value added service and a credit life insurance plan which provides cover against the outstanding balance or the maximum specified amount, whichever is the lesser amount, on your credit card facility at the time of your death or permanent disability, subject to the following conditions: • We (the Insurer) must receive satisfactory proof of your death or permanent disability within twelve (12) months of the event; • We will not waive any amount owing to us that is greater than five thousand Rand (R 5 000) for Aspire cardholders, twelve thousand Rand (R 12 000) for “Platinum” cardholders and one thousand Rand (R 1 000) for “Standalone Premier Petro Card” holders. Twelve thousand Rand (R 12 000) for “Private Clients” cardholders. Twelve thousand Rand (R 12 000) for “Private Wealth” cardholders.
31.1.2 The Automatic Debt Protection Plan starts on approval of your credit card facility and ends: • When the Insurer pays a claim in the event of your death or permanent disability; • If you are under special arrangement and default twice, whether consecutively or at any time during a sixty (60) month period, the Plan will automatically terminate, and you will lose your cover and have no claim under this Plan.
31.1.3 We will not waive any amount: