ARDCI Microfinance Insurance Program pays P144-M in claims to beneficiaries
posted 24-Mar-2019  ·  
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MARILYN MANTES (left) signs documents at ARDCI’s Ligao branch as the cashier readies the release of death benefits following the demise of her husband Dante.

Reflecting the success of its Insurance Program over the last two years, the ARDCI Microfinance Inc. has paid out over P144 million in approved claims to policy holders or their beneficiaries.

This latest winner in ARDCI MFI’s expanding trove of accomplishments stems mainly from its twin plans that provide not only life insurance coverage but also a facility to accumulate funds for payments of other benefits as well as to cover outstanding loan balances in case of untimely demise.

Under the Group Comprehensive Benefit Plan are the Group Term Life Insurance Plan (GTLIP), Group Accidental Benefit Rider (GADBR), Group Total and Permanent Disability Rider (GTPDR), Group Accident Medical Reimbursement (GAMERR), Group Hospital Income Rider (GHIR), and Group Terminal Illness Rider (GTIR).

The Basic Life plan pays the amount of insurance of the insured member in the event of his death during the defined period. Not only that, the family of the deceased member is provided an “instant abuloy” benefit: P5,000.00 for those who have been a member below three years and P10,000.00 for memberships over three years.

On the other hand, in case a contestable claim is denied due to the ineligibility of the principal or insured borrower, the insurer is obligated to pay an fixed “ex gratia” settlement of P10,000.00 to the designated beneficiary, with the amount to be equally shared by ARDCI and PhilLife.

In case of death due to accident, the Group Accidental Benefit Rider (GADBR) pays out the full amount of insurance but there are some exclusions. These include bodily or mental infirmity, hernia, food poisoning, bacterial infection or disease or sickness of any kind; poison, gas or fumes whether voluntarily or involuntarily taken; atomic explosions, nuclear fission or radioactive gas; any accident occurring while or because the insures is affected by alcohol or any unprescribed drug; selt-destruction or any attempt thereat while sane or insane; participation in any brawl; any violation or attempted violation of law or resistance to arrest; murder or unprovoked assault; or, war, strike, riot, civil war, revolution or any warlike operations or while under orders for such operations or restoration of public order.

Under the Group Credit Life Insurance Plan, upon the death of the Insured Debtor, the Insurer shall pay ARDCI as Creditor the amount of his insurance to the extent of his outstanding loan balance, and to his designated beneficiary any amount of insurance in excess of his outstanding loan balance.

If the insured becomes totally and permanently disabled by bodily injury due to accident and is thus prevented from working due to disability for a continuous period of at least six months., the Group Total and Permanent Disability Rider (GTPDR) pays out the amount of insurance. However, upon availment of the benefit, all insurance under the policy with respect to the benefit immediately ceases.

Should the member suffer terminal illness, the ARDCI Microfinance Insurance Program covers him, too.

The Group Terminal Illness Rider (GTIR) pays 50% of the amount of insurance in advance under the basic plan, upon diagnosis that the covered member is terminally ill.

However, the benefit under GTIR shall not be payable if the terminal illness was caused directly or indirectly, wholly or partly, by the following exclusions: self-inflicted bodily injury, while sane or insane, or caused by attempted suicide; the commission or attempted commission of the insured of any criminal act; functional disorders of the mind, abuse of drugs or alcohol; atomic explosions or radioactive gas; declared or undeclared strikes, riots or civil strife; or, sexually transmitted diseases, AIDS and AIDS-related diseases.

If the insured is hospitalized in a duly registered hospital recommended by a physician, the Group Hospital Income Rider (GHIR) pays a benefit for each day of confinement for up to 365 days.

Excluded from coverage are hospital stays not recommended by a qualified doctor, those due to war or civil strife, fortuitous events, those outside the country or done prior to the coverage period; routine physical exams, diagnosis or check-up, therapy, and renal dialysis; confinements due to self-inflicted injury, pregnancy-related complications or those caused by venereal diseases, nervous or mental breakdowns or disorders; confinements due to sickness or injury while serving in the military; those caused by murder or unprovoked assault, AIDS or AIDS-related illnesses, or those by reason of cosmetic dental or plastic surgery, except those for the repair of damage caused by accidental bodily injury; confinements involving congenital deformities, alcoholism or drug addiction or allergic reaction to drug, or due to experimental medical or surgical procedures.

On the other hand, ARDCI’s Loan Protect Plus (LPP) not only helps the member’s family in case of his sickness but also addresses risks associated with illness. It pays P100 to P500 for each day of confinement in a registered hospital, which would help the member pay his obligation.

A Medicine Allowance ranging from P100 to P500, depending on the confinement period. Is also given to the insured borrower during confinement, with only the proof of confinement required. No receipts are required for the benefit, which is in addition to the amount of other insurance payable under the policy.

Even if fire or natural calamities befall the insured member and his house is totally damaged, he or she will receive a Special Financial Assistance (SFA) of P5,000.00. Among other conditions, however, the lot where the destroyed house is built must be owned by the members and the house itself must be his or her declared residence.

Members are automatically qualified for the benefit regardless of his membership date and they do not have to make any insurance contribution since it is already covered by the Basic Benefit Package.

Subject to limitations, the Group Accident Medical Reimbursement (GAMERR) reimburses the actual medical expenses incurred during treatment of accident-related injuries at a maximum of P15,000 for the member, P5,000 for the spouse and P1,000 for the child dependent, with the last two required to have more than three years of membership.

For those getting on in years, ARDCI Microfinance’s insurance program automatically entitles any member who reach the age of 75 years old the Exit Age Benefit of P10,000, with his spouse or parent dependents also given P5,000 of the same benefit when they turn 75.

Not only does the program make it easy for the members or their dependents to claim, due to the minimal number of requirements, any bonafide member of ARDCI Microfinance who are actively at work and in good health, at least 18 to 65 years old upon enrolment are qualified for the Group Comprehensive Benefit.

The Group Credit Life, on the other hand, covers any borrower who is of the same qualificarions but only the principal borrower is insured and no substitution is allowed.

The Insured has the right to designate anybody not disqualified by law to be his beneficiary or beneficiaries. But if there will be no designated beneficiary or beneficiaries surviving upon his death, the benefit is given to surviving kin.

Depending upon the years of membership, a principal member is eligible for insurance ranging from P10,000 to P100,000 while his spouse/parent wlll be insured for P15,000 to P50,000, the child  from P3,000 to P10,000.

Truly, ARDCI Microfinance’s pitch for its insurance program – “It’s not for you; it’s for those you care most about” – has resonated well in the hearts of its members and borrowers.

IN LUCENA CITY, another ARDCI member receives her insurance benefits soon after submitting needed documents to the branch office.
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