This type of insurance pays the minimum monthly repayment of the amount owing as at the first day of the month in which the Customer is retrenched for a certain maximum period as defined by the insurer.
The termination of the Customer’s position by his or her employer based on adverse trading conditions or anticipation thereof upon any other business decisions of his or her employer resulting in staff reductions shall define the retrenchment of the Customer.
The retrenchment should result in the Customer not receiving any remuneration from any occupation. This has hugely happened during the covid-19 Corona virus pandemic where employees have lost jobs due to companies going down
