Standard Insurance Product "Mortgage Loan Borrower Insurance"

Insured object:

• under accident insurance and health insurance in case of illness – life, health and/or working capacity of the Insured person;
• under property insurance – property held, used, or disposed of, as specified in the insurance contract;

– with which the insurance interests of the Policyholder (Beneficiary) and the insurance risks to be covered under the Contract are connected.
Property accepted for insurance must be the subject of the Bank’s mortgage. The borrower’s life, health, and/or working capacity are subject to insurance.

Insurance risks. Insured events.

Insurance limitations

Insurance risks: 

1. Under property insurance, the insurance risks are:
   • Fire (excluding arson), lightning strike, explosion;
   • Fall of manned aircraft or their parts/cargo onto the Insured property; collision of land vehicles with the Insured property;
   • Unlawful acts of third parties: burglary, theft, robbery, vandalism;
   • Leakage of water from public utility systems, including due to accidents in utility systems (water supply, sewage, heating, fire extinguishing) and connected household devices;
   • Ingress of water or other liquids from neighboring premises;
   • Natural phenomena (strong wind, including squalls, tornadoes, and storms; hail (large hail); heavy rain; heavy snowfall, snow sticking; landslide, rockfall, mudslide, avalanche; subsidence of ground surface (sinkhole); high water levels (flood, inundation), rising groundwater levels (subflooding), flooding; earthquake).
2. Under accident insurance and health insurance in case of illness, the insurance risks are:
   • Death of the Insured person as a result of an accident;
   • Death of the Insured person as a result of illness;
   • Assignment of disability group I or II to the Insured person due to an accident;
   • Assignment of disability group I or II to the Insured person due to illness.

An insured event is the occurrence of an insurance risk provided for by the Contract, during the period of insurance coverage and validity of the Contract, confirmed by documents and not excluded from insured events.

Insurance limitations:

Under property insurance:

Unless otherwise expressly provided by the Contract, the following are not subject to insurance under this product and are not considered Insured property:

• sewage, drainage pipes, trenches, roads, sidewalks, railway tracks, dams, dikes, reservoirs, surface and underground water bodies, canals, drilling equipment, wells, pipelines, cables, tunnels, bridges, docks, piers, berths;
• items during transportation by internal, railway, air, or water transport;
• vehicles permitted for use on public roads, railway locomotives, rolling stock, self-propelled machines, watercraft, aircraft, and spacecraft;
• cash, deeds, ownership certificates or monetary obligations, banknotes, coins, stamps, securities and records, bonds, bullion, furs, jewelry, precious metals, antique or classic cars; samples, teaching aids, models, exhibition items; plans, drawings, diagrams, manuscripts, photographs; technical information carriers;
• works of art, collections, stamps, coins, drawings, paintings, sculptures, etc.;
• plants, agricultural crops, trees, pastures, animals, birds, fish, and other living organisms;
• property in mines, underground, natural resources (oil, gas, natural deposits), property on seashore or ocean coastlines;
• any property on the territory of nuclear power plants;
• nuclear reactors, buildings housing them, and any equipment and machinery inside;
• any property on territories used for the production, use, transfer, or storage of nuclear materials;
• power transmission lines and their structures, if insured under the Contract, beyond a radius of 300 meters from the insured territory;
• unfinished construction, buildings, structures under construction/installation, unused buildings/structures and the property inside them;
• buildings and structures in emergency or dilapidated condition, and the property inside them; faulty or unusable property;
• buildings and structures not commissioned according to Ukrainian law, property therein; property withdrawn from civil circulation or restricted according to Ukrainian law;
• property located in an area officially recognized by competent authorities as a potential disaster zone, emergency zone, or combat zone, if such declaration was made prior to the conclusion of the Contract.

Under accident insurance and health insurance in case of illness, the following persons are not accepted for insurance:

• under 18 years old and over 65 years old at the time of Contract conclusion;
• registered in narcological or psychiatric dispensaries;
• declared legally incapacitated;
• HIV-positive persons, persons with malignant tumors, severe cardiovascular diseases (heart defects, chronic circulatory insufficiency stages IIA, IIB, III), persons with insulin-dependent diabetes mellitus, epilepsy;
• persons suffering from heart diseases (including but not limited to myocardial infarction), chronic diseases of the nervous system (including but not limited to stroke).

Insurance sum is determined by agreement of the Parties:

- within the actual (market) value of the property – under property insurance;

- within the debt under the Loan Agreement – under accident insurance and health insurance in case of illness.

The insurance sum is aggregate and decreases after payment of insurance indemnity.

The amount of the annual insurance rate depends on the insured object, the list of insurance risks, the number of insured objects, and the information from the description of the insured object, and is set at:

• from 0.05% to 0.5% of the insurance sum – under property insurance;
• from 0.3% to 1% of the insurance sum – under accident insurance and health insurance in case of illness;

The insurance premium is calculated individually by multiplying the insurance sum by the insurance rate.

Deductible: set at 0% to 10%, by agreement of the Parties.

Under property insurance: an unconditional deductible is established for each insured event in the amount of 1% of the Insurance sum (but not less than 1,000 (one thousand hryvnias)).

Under accident insurance and health insurance in case of illness no deductible applies.

Territory of insurance:

Under property insurance: the address of the Insured property, within the territory of Ukraine.

The insurance contract does not apply:

- to zones of military conflicts and mass disturbances, temporarily occupied territories of Ukraine as defined by the legal acts of Ukraine, as well as territories where state authorities temporarily do not exercise their powers, and settlements and territories located along the contact line or in areas of hostilities of any kind, or in their immediate vicinity (up to 60 km), regardless of the official recognition of war under law;

- to territories where a state of emergency has been officially declared, or areas having the status or officially recognized by the competent state authorities as zones of possible natural disaster, if such a declaration was made before conclusion of the Contract;

- to property located in insured premises but not listed as insured under the Contract.

Under accident insurance and health insurance in case of illness: worldwide.

The Contract does not apply:

- to temporarily occupied territories of Ukraine as defined by the legal acts of Ukraine; territories of Ukraine where state authorities temporarily do not exercise their powers; settlements and territories located along the contact line or subject to hostilities of any kind, regardless of the official recognition of war under law;

- to territories outside Ukraine in zones of hostilities of any kind, regardless of official recognition of war under law; temporarily occupied, annexed, or disputed territories; territories of states not recognized by Ukraine in the established manner; territories for which the Ministry of Foreign Affairs of Ukraine has issued a recommendation to refrain from travel prior to crossing the border by the Insured person.

Duration of the Insurance Contract – is established by agreement of the Parties at the time of conclusion of the Contract.

The Contract enters into force and the Insurance coverage begins at 00:00 Kyiv time on the day following the payment of the Insurance premium (or the first part of the Total insurance premium, if paid in installments) in the amount and within the term specified in the Contract, but not earlier than 00:00 Kyiv time on the date indicated in the Contract as the start date of the Contract. The payment date of the Insurance premium (or the first part of the Total insurance premium, if paid in installments) is deemed to be the date funds are credited to the Insurer’s account.

The Contract and Insurance coverage remain valid until 24:00 Kyiv time on the date indicated in the Contract as the expiry date, unless other circumstances provided by the Contract lead to its early termination, taking into account the Contract terms regarding the payment of the Insurance premium.

In case of non-fulfillment or improper fulfillment of the terms of the Contract, the Parties are liable in accordance with the current legislation of Ukraine.

Failure of the Policyholder to notify (according to the terms of the Contract) of the occurrence of an insured event in due time without valid reasons, or failure to fulfill other obligations defined by the insurance contract and/or legislation, if this resulted in the Insurer’s inability to establish the fact, causes, and circumstances of the insured event or the amount of the damage (losses), is grounds for refusal to pay insurance indemnity.

In all cases, the Insurer is released from the obligation to make an insurance payment for events where, at the time of their occurrence, there was an overdue debt on the Insurance premium (part of the Total insurance premium if paid in installments) under this Contract.

The Contract is supplementary to banking services under the Loan Agreement specified in the Contract. In connection with the conclusion of the Contract, there is no need to obtain additional or ancillary services of the Insurer and/or third parties related to receiving the financial service under the Contract.

Discounts and promotional offers are not available and do not apply.

Before concluding the Contract, the Policyholder is obliged to provide the Insurer with information of material significance for the Insurer’s decision to conclude the Contract and/or on the amount of the insurance premium under the Contract, and during the validity of the Contract, no later than 5 (five) working days after any changes occur, to notify the Insurer in writing of any changes in circumstances of material significance for assessing the insurance risk (determining the probability of an insured event and the amount of potential losses), and/or other circumstances affecting the amount of the insurance premium under the Contract.

Information of material significance for the Insurer’s decision to conclude the Contract and/or determine the insurance premium under the Contract, and/or for assessing the insurance risk in terms of property insurance includes:
• details of the Insured property specified in the Contract;
• losses related to the Insured property that occurred before the conclusion of the Contract (including under contracts with other Insurers);
• all valid insurance contracts concluded in relation to the Insured property;
• existence of an insurable interest of the Policyholder in relation to the Object of insurance on legal grounds or other legal relations, including in the Beneficiary (if such person is specified in the Contract).
Changes in circumstances of material significance for assessing insurance risk (probability of occurrence of an insured event and the amount of possible losses), and/or other circumstances affecting the insurance premium under the Contract (also in the Contract referred to as change or increase of the degree of risk) include:
• change in the value of the Insured property;
• complete change of the type of business activity carried out at the insurance location;
• transfer of ownership, transfer of the Insured movable property for use by another person (lease, leasing, etc.);
• major repairs, re-equipment, reconstruction, demolition of the Insured property and/or buildings/premises in which the Insured property is located;
• change in conditions and nature of storage, protection of the Insured property;
• deterioration of fire protection, receipt of orders from state fire supervision authorities, violation of fire safety, property protection, work safety or other similar regulations established by current legislation and normative acts, if such violations are committed with the knowledge of the Policyholder;
• vacating insured buildings and structures for major repairs or for other reasons for more than 60 (sixty) days.

Information of material significance for the Insurer’s decision to conclude the Contract and/or on the insurance premium under the Contract, and/or for assessing the insurance risk in terms of accident insurance and health insurance in case of illness includes data on the age of the Insured person, their profession and work duties, health condition, and changes in the health condition of the Insured person.

This insurance product requires prior review by the consumer to make an informed decision on concluding the insurance contract.

Before concluding the insurance contract, the consumer must review the information on exclusions from insured events and grounds for refusal of insurance payments, the insurer’s liability limits for a particular insured object, risk and/or insured event, as well as the calculation procedure and conditions for insurance payments, contained in the General Terms of the insurance product “Mortgage Loan Borrower Insurance”, available at: https://uniqa.ua/storage/public-offer/partner-reports/1413_umovy_15.07.2024.pdf