Common use of Loan Protector Clause in Contracts

Loan Protector. Subject to the Company accepting its liability against a claim under section 2.1 of this Policy and in consideration of additional premium received from the Policy holder/Insured Person at the time of issuance of the Policy, it is hereby understood & agreed that the Company shall, in addition to the Sum Insured for the insured person also pay any one of the following two amounts whichever is lesser: 1. The principle outstanding amount of the insured person in case of only one insured person being covered or 50% of the principle outstanding amount in case of two insured persons being covered under the Certificate of Insurance.