OREANDA-NEWS. March 17, 2010. The loan payments of almost one hundred struggling loan clients of SEB are paid by insurance as they have taken out loan payment protection insurance contracts. 90 percent of insured events are the result of the borrower losing his or her job after being made redundant, reported the press-centre of SEB.

The clients of SEB have entered into almost 5000 loan payment protection insurance contracts within two years. The value of the loan portfolio with temporary incapacity for work and loss of work is currently 720 million kroons.

"Some negative notes appeared in the economy in 2008 and SEB decided to offer insurance cover to its loan clients so that they would not have to worry about their loan payments if they unexpectedly lost their jobs or became temporarily incapable for work. One-third of new loans are covered by loan payment protection insurance and the interest of clients in this solution is clearly increasing," said Triin Messimas, Business Development Manager of SEB Private Loans.

She added that forty percent of the home and mortgage loans paid out in the first week of March are covered by insurance.

"Last week, the insurer decided to pay out the biggest monthly insurance indemnity so far, which is 9246 kroons," added Triin Messimas.

SEB entered into the first payment protection insurance contract two years ago, on 5 March 2008, and it was the first insurance contract of this type in Estonia. The insurer is leading international insurance company Genworth Financial.