Detail

Prague, 14 June 2005 - Komerční banka has launched a new life assurance policy covering the risk of mortgage loans (a type of an endowment policy). This policy covers the risk of death or a complete and permanent loss of self-sufficiency of the life assured, and for the client and his family constitutes an important option of protection against financial problems with repaying the mortgage loan, which may arise from such difficult situations in life.

The sum assured depends on the amount of the mortgage loan granted, and gradually decreases as the client's liability to the bank decreases.

In the case of an insured event which the endowment policy covers, Komerční pojišťovna will pay the outstanding portion of the mortgage loan to Komerční banka. If the insured event happens within 26 months from the starting date of the policy and if by that moment the loan had not been drawn down completely, Komerční pojišťovna will pay the client, or the survivors, also the undrawn portion of the loan. (A mortgage loan must be drawn down completely within 24 months of signing the loan agreement).

This endowment policy flexibly responds to changes in the client's payment schedule - for example, if a part of the loan is repaid in an extraordinary instalment, the premium is recalculated according to the then outstanding part of the loan.

The endowment policy can be taken out for both types of the mortgage loans provided by Komerční banka (Klasik and Plus).

Komerční banka is the third largest bank in the Czech Republic by the size of assets, providing comprehensive financial services to clients in retail, corporate and investment banking. Today, 7,300 KB employees serve more than 1,421,000 customers, who can use an extensive network of 338 points of sale all over the country. KB operates 569 ATMs and more than 800,000 of its customers use one of direct banking channels.

In 2004 KB was awarded the "Bank of the Year" title. KB is a part of the Société Générale Group, the fifth banking group in the euro zone. Around 92,000 of the Group's employees serve more than 17 million individual clients worldwide.