September 18th, 2010 | 
Author: Social credit system in China has yet to be perfect conditions, the banks to resolve their own credit risk, often require buyers to purchase loan insurance. However, the current credit insurance contracts are far from perfect, to a certain extent, against the interests of buyers, mainly in the following areas:
First, the actual commitment of less than the contract.
Loans to the general provisions of insurance contracts, insurance period and the term of the loan agreement, insurance contract, delivery of house from the date of purchase until the date of the borrower to pay off principal and interest. Most home purchase loans is Being Built, and the actual delivery of house loan is on a time difference, common first loan, after the delivery of house phenomenon. The premiums start from the loans begin to accrue from the date of closing, since the insurance contract from the purchase contract, beginning from the date of delivery of house commitment, not to mention not Jiaofang also take insurance.
Therefore, the insurance companies of the insurance period was shorter in term of the loan. In the delivery of house on loan to this window period, the insurance company does not assume any liability insurance.
Second, a one-time payment of all premiums.
Although some insurance companies provided insurance in the contract, “the annual fee, billed annually,” but in practice, often one-time charge for decades.
This is essentially free of charge for decades occupied the home buyers interest income and increased financial burden on home buyers. Insurance premiums are usually charged on a one-time explanation is that in the existing technology, if the annual collection of premiums, insurance companies must not only lots of manpower and material resources, but also to bear the buyers do not Jiaona renewal risk premium . However, this interpretation is clearly unconvincing.
Many life insurance products, insurance period for decades, but the premium annual, quarterly or even monthly fee. Shows that, technically not a question, the insurance company unwilling to give up a one-time charge is the key to the problem of interest. Even if buyers can not pay the premiums on time, insurance companies can in accordance with the “Insurance Law” the relevant provisions, terminate the insurance contract, does not assume the insurance responsibility, not to mention the risk of naturally.
Third, borrowers, not the beneficiaries.
Mortgage home loan insurance contracts usually provide that the bank is the first beneficiary. Because the mortgage itself is a form of guarantee, so should not only apply to mortgage insurance, “Insurance Law”, but also for “security law.” “Guarantee Law,” the 58th article: “The right of mortgage collateral perish. Compensation for loss of income, should the property as collateral.”
Shows that banks, as mortgagee, that is the subject of insurance of housing mortgages insured event occurs when the identity of the first beneficiary can receive the insurance claim to avoid risks. This allows large buyers, however, did not understand their own money to buy a house obviously, not the beneficiaries themselves.
Therefore, in order to make housing loans, insurance, real people are recognized for the bank should not be the primary beneficiary of the insurance contract, which does not affect the original intention of the bank to avoid risk. Beneficiaries should be the buyers. In the event of insured accident, loss or damage to housing mortgages, banks can take priority in compensation and legal protective measures. In this way, banks can either avoid the risk, they allow buyers to accept emotionally.
Because of this, home buyers when the contract was signed calm observation, careful analysis, to avoid unnecessary misunderstanding and losses.
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