1. How does Premium Funding Work ?
PFS refers to " Premium Funding Singapore Pte Ltd "
(2) Premium Funding Procedures
Quotation : The Insured will fax their insurance policies to PFS.PFS will compute a quotation which will state the amount of initial payment, monthly installment and total payable for the client's acceptance.
Loan Documents & Initial Payment : Upon acceptance of the quotation, the client will be required to sign the loan documents and return them with the initial payment one month before the end of warranty period . (As we need around 1 month to process the loan, we will not held be liable for any delay in payment to the underwriter if client fails to give us the documents and payment on time).
Payment to Underwriter : Upon approval of the loan, we will make payment to the underwriter and issue a copy of the agreement and letter of authorisation to the insured.
Default Payment : If the insured defaults payment, PFS will oblige the insurers to cancel the policy and refund the pro-rata premium to PFS.
||(3) What Policies do we accept ?
Premium Funding is available to all cancelable general insurance policies such as fire, public liability, workmen's compensation, motor vehicle, group hospital and surgical expenses, professional indemnity, marine, etc.
We do accept non-cancelable policies with a banker's guarantee or security.
If you are uncertain about which category your policy belongs to, please call our staff at 6227 4822 for further assistance.
(4) How long is the installment period?
The installment period is based on a 10 months installment plan.
(5) How much is the initial payment?
The initial payment includes 2 months of installment amount, plus credit and administrative charge.
(6) How is the payment mode?
You can pay Premium Funding Singapore Pte Ltd based on a 10 months installment plan. This is made up of a 2 months initial payment, followed by 8 monthly installment which will be deducted through GIRO on the 1st of every month.
(7) What happens if in between the loan period I have a new policy or have to pay additional premium on my funded policies ?
For a new policy, you will have to pay your insurer directly or apply for a new loan. As for additional premium on the same policy, we can spread the additional premium equally on the remaining installments.
(8) Under what circumstances will I be entitled to a refund?
The circumstances will include -
1. Insured cancel the policy to be funded.
2. Insured cancel the premium funding before the loan is approved.
3. Loan is not approved by Premium Funding Singapore Pte Ltd.
(9) Can the 7 days notice of cancellation be extended ?
The 7 days notice of cancellation is important to us, as it is the only means that we can recover the outstanding loan amount from the borrower. Without this ability to cancel the funded policies in a timely manner, the credit charge will be higher. We do not expect to invoke this notice, as it is rare for a company to risk cancellation of their insurance policies.
(10) Can my broker pay the interest element for me ?
We do not want to be involved in this arrangement. Your broker will have to find an alternative arrangement to fulfill his objective.