H-P Protection Plan for EON Customers
Although we don’t want it to happen, sometimes there is an accident and one becomes permanently disabled or a loved one passes away. Apart from the sadness and many things to sort out after the person passes away, there is also the matter of outstanding loans which can be awkward. The finance company may invoke the clause which allows them to repossess the car as instalments have not been paid after three months and such demands are obviously hard to settle for many next-of-kin.
To prevent such difficulties, EON is now offering a Hire Purchase Protection Plan (HPPP) to its customers which will ensure that, in the event of death or Total and Permanent Disability, the amount owing on the H-P loan will be paid up and ownership of the car will be given to the party that is deemed the beneficiary of the deceased.
Explaining HPPP, EON Managing Director Datuk Adzmi Abdul Wahab said: “For a nominal one-time fee, the financial protection offered by HPPP gives car owners full protection and peace of mind.”
HPPP is a special plan which is offered by EON CMG Life Assurance Bhd, a joint venture between EON and the Commonwealth Bank Group of Australia, Australia’s largest financial services company. It is available as an option from all EON sales branches and authorised sales dealers and the premium can be incorporated in the H-P loan taken so that it can be paid off as part of the monthly instalments.
Typically, the HPPP premium is paid once – at the time of purchase – and the average premium is RM520. This is based on a coverage of RM30,000 over five years (period of H-P loan) for a customer who is 25 years old. The customer’s age is a factor in the premium computation; older customers will pay a marginally higher premium and the maximum age for applicants is 60 years old.
“The application is hassle-free, like motor vehicle insurance, and just a few questions will be asked concerning the health of the person. We want it to be customer-friendly and believe it is an affordable plan,” said David Lee Lye Fong, Chief Executive EON CMG Life Assurance. He added that, in the event of a claim, the processing time to settle the outstanding loan amount should be completed within a month if everything is in order.
Mr Lee said that the company expects to derive between RM7 million – RM10 million annually on premiums from HPPP. This will come from an anticipated 20% of EON customers who take the plan. He added that it was possible that the company may offer it to non-Proton customers later on but such a development is not being considered at this time.
The HPPP is another initiative by EON which is aiming to enhance its relationship with customers in a big way. It also helps differentiate EON from USPD as it provides EON customers a valuable extra which is not available from USPD (EON and USPD are joint distributors of the Proton Waja). Next week, EON will also announce another customer benefit known as Sahabat EON which Datuk Adzmi hinted will also be very welcome by EON’s customers, which now cumulatively total more than 1.2 million nationwide.
