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Special Luminor offer for leasing insurance

Special Luminor offer for leasing insurance
  • Selectable covers for MTPL, CASCO and Specialized Machinery Insurance
  • Combined payment for leasing and insurance
  • Additional discount for the entire leasing term
For private individuals
For businesses

Leasing Insurance requirements

Valid from 2020 08 19

Vehicles, machinery and equipment insurance requirements set minimum rules to be met in insurance policy of when insuring collateral. Insurance requirements minimise risks caused by sudden, unexpected and unforeseen events (insurable risks) to the collateral.

Insurance requirements ought to be met in process of leasing issuing and maintained till leasing agreement is closed.

General provisions

Term “Policy Holder” shall identify Customer or Customer representative

Term “Insured” shall identify Customer, Borrower or Pledgor.

Term “Beneficiary” shall always represent Luminor Lizingas UAB, code 111667277.

Insured object must be identified by

  • Registration number or VIN number (vehicles and machinery)
  • Serial number and model (equipment) 

Territorial scope

  • Europe (vehicles)
  • Address/ area of use (machinery and equipment)

Maximum deductible

  • Vehicles with full mass till 3500 kg – partial damage till EUR 500, total loss (as theft and robbery) max 15 %
  • Vehicles and machinery with full mass more than 3500 kg – partial damage till EUR 1000, total loss (as theft and robbery) max 15 %
  • Equipment – EUR 1000

Only legally valid insurance contracts are accepted. In case Luminor receives information that Policy is not paid in agreed payment date and is to be terminated, Luminor holds the right to issue mandatory insurance or collect additional fee (according to agreement).

Insurance companies accepted by Luminor across Baltics

Luminor across Baltics accepts insurance contracts issued by following companies and their branch offices:

  • Lietuvos draudimas AB (incl. PZU Kindlustus as AB “Lietuvos draudimas “Eesti filial)
  • AAS BALTA
  • Balcia Insurance SE
  • If P&C Insurance AS
  • ERGO Insurance SE
  • Seesam Insurance AS
  • ADB Gjensidige
  • Compensa Vienna Insurance Group ADB
  • AAS BTA Baltic Insurance Company
  • Swedbank P&C Insurance AS

Insurance companies accepted by Luminor with conditions

Following insurance companies are accepted with conditions:

Insurance company Location/market Accepted insurance lines Value limit (incl. VAT) for object
SALVA Estonia only All No limit
BAN Latvia only All EUR 100,000

Minimum risk cover

If not agreed differently in particular Leasing/Loan agreement, minimum risk cover should met those requirements:
 

Insurable objects Required risks
Motor vehicles and their trailers (required to be registered in the traffic register) (CASCO insurance type)
traffic accident,
natural disaster,
fire, robbery, vandalism, theft
Including risks delivering object (as risks of loading, transportation and unloading).
Machinery for specific use ;(construction, agriculture, forestry, road construction etc.) (Contractor’s plant and machinery insurance – CPM)

All risks associated with the possession and use of the property (including but not limiting with partial damage, fire, water hazard, natural disaster, theft, robbery, vandalism)

Including risks delivering object (as risks of loading, transportation and unloading).

Insured sum

All insured objects must be insured with full recovery/replacement value.1
Replacement value is Market value (accepted also new purchase value as “old for new” principle)

NB! Sum insured and future claims paid must be including VAT (and transportation costs if object is purchased abroad Baltics).
1NB! If object is to be insured in actual, underinsurance or first loss limit insurance (if mentioned in insurance policy), it must be agreed according to Bank’s powers to act according to credit manual or approved by person with delegated rights.

Timing

Insurance agreement must enter into force before the act of transfer for the Object is signed, and however not later than the risk of accidental damage, destruction or loss transfers to the Lessee/Borrower.

If not agreed differently in particular Loan/Lease agreement:

  • For existing loan/lease customers new policy must be provided 14 days prior existing one has expired.
  • For new loan/lease customers policy must be provided immediately after registration.