Banks impose insurance fees on accounts against job losses

Bank dealers said they were surprised to deduct between 10 and 25 dirhams a month from their balances, for a long time, they thought it was a fee to drop the minimum balance of 3000 dirhams, which is set in the Central Bank's fees and commissions table, but they discovered that they are insurance fees against job loss, It is imposed on the salary depreciation accounts, indicating that it is up to one bank to do the same debit on the account even after the salary is transferred to another bank.

For their part, two banking experts said that banks are not entitled to deduct monthly insurance amounts on bank accounts, without the presence of a clear signature from the client, explaining that taking insurance on the same account comes as an investment insurance product, the main objective of which is to hedge against the loss of work, where the A customer who is continuing his business is one of two options, as applicable, either to receive annual profits for example on the amounts paid or determined according to the agreed period, or get one amount at the end of a specific period also provided that the job is lost.

They stressed that the customer must understand that there are types of insurance for financings, including what is on the credit card or loan, explaining that for the credit card there is insurance against loss of employment, usually only covers up to six months, and insurance companies require the termination of labor services arbitrarily, and this is difficult to prove , So virtually no customer will benefit from this insurance.

AED 15

In detail, the customer (WJ), who declined to give his full name, said that the bank used to deduct 15 dirhams per month from his account, but he thought it was because the balance limit was less than 3000 dirhams, but he kept last month a higher amount. Deducted, contact customer service and told the employee that it is a monthly insurance fee against the loss of the job, and deducted from 2016 until the end of last August, despite the transfer of salary to another bank and the termination of all material obligations towards the bank in question. He confirmed that when the bank reviewed the employee told him that the matter continued in error, but can not recover the amounts paid despite acknowledging that the eligibility of the deduction since the date of transfer of salary to another bank, explaining that he was not notified by the bank employee at the opening of the account that there is any insurance fees on the same account And, for the first time it is heard that there is an insurance fee on the account against loss of functionality.

6 months

For his part, the customer, (Sharif A.), who declined to give his full name, said that his bank deducted over six months 25 dirhams insurance fee against loss of work, without notice, believing that it is the limit of AED 3000, which must be held by the customer In his account, prescribed by the Central Bank system, explaining that he accidentally discovered that this amount deducted against insurance, when reviewing the statement of the account for another order related to purchases, stressing that he made an immediate request to recover the insurance payments paid, but the bank employee told him that the insurance Within the terms of opening the account he signed, stressing that it was not explained to him at all when opening the an account.

Customer said that the bank deducted a monthly amount of 20 dirhams from her account under the insurance against the risk of leaving the work, stressing that the employee explained that it is entitled to recover the amounts in the form of profits or when moving to another bank, and that it is a type of investment insurance But when you left the bank did not know how to recover the amount or had any insurance company, as the relationship between the bank and the company and the customer knows nothing about.

Common error

On the other hand, the banking expert, Awatif Hermoudi, said that «the common mistake that most of the dealers do not read the terms and conditions of opening accounts or taking funds, and this must be paid attention to it because when any problem occurs, the contracts are invoked and not taken any words sent Documented by papers and signatures, explaining that «some banks offer their customers an investment insurance product when opening accounts, the main objective of which is to hedge against the loss of work, where the continuous customer in one of two options as applicable: Either get annual profits for example on the amounts paid Or determined by period Agreed, or get one particular sum at the end of a specified period also ».

She pointed out that in the event the customer lost his job entitled to benefit from insurance, according to the terms of the document signed, whether the proportion of salary or the entire salary for a specific period, and so on.

Hormoudi added that the customer should review the monthly statement accurately and the bank employee must also be honest with the customer to explain all the terms of the contract, with the need for customers to read the contract well before signing, pointing out that banks are not originally entitled to collect any fee not included in the schedule of fees Issued by the Central Bank, or signed by the customer.

Customer behaviors

For his part, said the banking expert, Ahmed Ibrahim, that «dealers should change their behavior when dealing with banks, to read well what they sign», explaining that «banks can not impose a fee without the signature of the client, and there may be a default "Some employees explain the terms, but the contracts are now written in Arabic and English, and every customer can read and ask for all the details."

He added that there are several types of insurance when dealing with banking, including what is on a credit card and loan, pointing out that for the credit card there is insurance against loss of employment, usually covers only up to six months, and insurance companies require that the termination of labor services have been arbitrary, and this It is difficult to prove, so virtually no client can benefit from this insurance. He added that there is a life insurance when taking financing, which is paid once, and be within the expenses and commissions of the loan, or against the loss of work and this must also be accompanied by financing.

He added that the insurance on the accounts comes within the investment products sold by some banks in partnership with insurance companies, including insurance on the same account against the loss of the job, but must be explained its advantages and conditions well by the bank employee, so as not to surprise the customer in the future deduction of amounts not known for.