Premium Instalment Plan
An easy and convenient way of spreading the cost of your customers' premiums
You can download a copy of our Premium Instalment Plan application form here.
1. How the plan works
- Your customers’ premium can be divided into 12, 6, or 4 instalments, normally spread over a 12 month period. This assumes the credit agreement is set up on the first day of cover commencing
- To start the agreement customers are required to pay a deposit of 10% of the total premium. This can be collected by Direct Debit, Cheque or Credit Card
- If your customer chooses to pay in bi-monthly instalments, we require a deposit of 20% of the total premium and quarterly instalments require a deposit of 25% of the total premium
- After the deposit has been paid further payments will be collected from your customer’s bank account by direct debit with an 8% service charge added.
Note: To be eligible, customers must be over 18 years of age and have a current account with a clearing bank, or building society. If the agreement is set up late then the 1st Direct Debit will include any missed instalments.
2. Which policies can be included?
- Most Allianz annual renewable policies, either personal or business, can be included in this instalment plan
- If you have personal lines, commercial lines or engineering business we will need to set up separate instalment plans
- You may include any number of policies under the same premium instalment plan, provided that they are for 12 months and are all renewable on the same date.
3. It’s simple to set up
- Firstly we require the appropriate deposit amount from your customer
- Then your customer should complete the application (Individual or Business) and Direct Debit instruction
- When the Plan commences, your customer will be sent a credit agreement showing the direct debit amounts and the date each month when they will be collected
- Normally the amount of the instalment will vary only when your customer amends their cover or at renewal. If the instalments change, customers will be sent a modifying agreement which will show the revised amount of the direct debit. This will be sent before the amended instalment is collected.
4. Renewing the plan
- At renewal we will send a new Credit Agreement to your customer and will continue to collect the premiums by direct debit unless we are informed otherwise.
5. Cancellation
- Please contact us immediately if your customer wishes to cancel the Premium Instalment Plan. They should also instruct their bank/building society to cancel the Direct Debit Instruction
- In the event of a policy cancellation and an outstanding balance remains, then correspondence will be issued requesting payment for monies due to us
- If a policy is cancelled mid term and leaves an amount outstanding on the Agreement, provided the Direct Debit Instruction is still current, a Direct Debit collection will be made to collect this amount. If a claim should occur, your customer will be responsible for paying the full balance outstanding up to the renewal date of the policy.
6. Late applications
- If an application is submitted late, we request that the appropriate deposit is collected for the period of cover the client has already received. For example if an application is submitted up to 60 days past inception then 20% Premium deposit should be collected
- If the deposit cheque is insufficient any shortfall in payment will be collected with the 1st Direct Debit Collection.
7. Credit checking
- Please note that applications will always be subject to a credit check, acceptance is at the company’s discretion and Allianz reserves the right to decide eligibility to this facility. If an application is declined by us, you remain responsible for premium collection and payments to us of all premiums, within the credit terms of your Terms of Business Agreement.
8. Declined agreements
- An agreement will automatically decline if the customer’s deposit cheque is dishonoured, or if the customer cancels their direct debit before the first Direct Debit is successfully taken. If an application is declined by us, you remain responsible for premium collection and payment to us of all premiums, within the credit terms of your Terms of Business Agreement.
9. Extra collections
- If an additional premium is processed after the final Direct Debit has been collected we will seek to collect the full amount outstanding by a further Direct Debit collection. The collection will be made 7 days following notification to the agreement holder. If the agreement holder cancels their Direct Debit Mandate, then correspondence will be issued requesting payment for the premium.
10. Payment collection date
- We are pleased to advise that a Chosen Direct Debit payment date option is available to the agreement holder. If this option is required, can you please ensure the customer states their request on the Premium Instalment Application Form.
11. Who can pay?
- As an alternative to the Policyholder, a member of the policy holder’s family, friend or Employer can pay; but they need to be the eligible bank account holder. Reasons behind any non-standard payment situation must be disclosed. Please ensure that the whole Premium Instalment Application form is completed signed and dated by the person applying for our credit facility. If their Employer is paying, then the Business Application Form and Direct Debit Mandate must be completed by the person authorised to allow the company’s bank account to be debited.