1. GLP Tab

To view the Global Loan Protection (GLP) details for a loan, navigate to the GLP tab within the "Edit Loan" screen.

This tab provides a detailed breakdown of the insurance premiums charged on the loan and confirms if the payment allocation instruction to the payment house was successful.

Note: Premium amounts are charged per calendar month. Rounding may cause a minor difference of a few cents between the displayed portions and the total premium.

2. Fields and Descriptions

• GLP Service Provider: The name of the insurance company.
• GLP Product: The name of the specific insurance product.
• Policy Start Date: The start date of the policy, which corresponds to the Loan Agreement Date.
• Policy End Date: The end date of the policy, which corresponds to the Final Instalment Date.
• GLP Status: The current status of the insurance policy. See section 4 for a detailed list of statuses.
• Payment Allocation Sent: Indicates if the instruction for premium payment has been successfully sent. See section 3 for more details.
• Insurance Premium: The calculated premium amount for one full calendar month.
• GLP First Premium: The premium amount charged for the first calendar month of the loan. This will be 0.00 if the loan agreement month and the final instalment month are the same.
• GLP Final Premium: The premium amount charged for the final calendar month of the loan.
• Total Premium (incl VAT): The sum of all premiums payable over the loan term, including VAT.
• Total Premium (excl VAT): The sum of all premiums payable over the loan term, excluding VAT.

3. Payment Allocation

• Payment Allocation Sent: This field will be marked as “Selected” if a successful instruction was sent to the payment house. This instruction authorizes the payment house to pay the insurance premium portion directly to the insurer's account when a loan instalment is successfully paid.
  • Important: If this instruction is not sent successfully, the insurer (GRU) will not receive the premium payment.
  • Limitations: This feature is only available for specific service providers. Currently, only one payment allocation instruction is permitted per loan.
  • Further Information: For a detailed procedure, refer to the "OPS Procedure MAXMONEY ALLPS Payment Allocation for Insurance" document.

4. GLP Status

The GLP Status indicates the current state of the insurance product. A user can manually update the status.

• Pending: The default status when a new loan is created.
• Active: The status automatically updates to "Active" when the loan status becomes active.
• Claim In Process: The user may manually change the status to this when a claim has been initiated.
• Claim Completed: The user may manually change the status to this once a claim has been finalized.
• Expired: The user may manually change the status to this when the policy coverage period has ended.
• Lapsed: The user may manually change the status to this if the policy is no longer active.
• Reinstated: The user may manually change the status to this to reactivate a policy.

5. Premium Charging and Cancellation

5.1 Recording Transactions

Global Loan Protection premiums are automatically charged either during the month-end process or when a final payment is received. This creates a double-entry transaction in the bookkeeping system:

• A debit to the debtor's account.
• A credit to the insurance charge ledger.

You can view the insurance charge debited to the client on the Loan Transaction View.

5.2 Charging Rules

Insurance premiums are charged per calendar month for the duration of the loan agreement, subject to the following conditions:

• Insurance will not be charged if the "Do not Charge Fees and Interest" checkbox is selected for the loan.
• Insurance will not be charged if the loan status is anything other than "Active" or "Non-Performing".
• Insurance charging ceases after the loan's final payment date.
• The calculation and charging of insurance are based on predetermined rules configured in the GLP setup parameters.

5.3 Cancellation

When a loan is cancelled, all associated GLP insurance charges will be automatically reversed.

5.4 Microlender Responsibilities

• Claims: It is the microlender’s responsibility to initiate a claim with the insurer when a loan is in arrears, in accordance with the service agreement. Any claimed amounts received must be receipted accordingly.
• Premium Payments: It is the microlender’s responsibility to ensure that monthly insurance premiums are paid over to the insurer in a timely manner, as per the agreement.