FAQs on Payment Protect

main computerLet's lift up the hood and look a bit closer at exactly how Payment Protect works.

FAQs on Payment Protect

FAQs on Payment Protect

Let’s lift up the hood and look a bit closer at Payment Protect. If you have any more questions after reading this page, please contact our Customer Service team on 0800 427 666

Frequently Asked Questions

Can I take out Payment Protect on an existing loan?

No.  Unfortunately Payment Protect can only be added to new loans. However if you are eligible for a Top Up loan, you can add Payment Protect to your new loan at the time you take up the Top Up.

What does Payment Protect not cover me for?

As comprehensive as Payment Protect cover is, there are certain things you will not be covered for. It would be advisable to review the full list of exclusions under Section F in the Payment Protect Terms and ConditionsPlease note: If you took out Payment Protect prior to June 18, 2019 you will find previous Payment Protect terms relevant to your repayment waiver application here

Does Payment Protect cover my spouse or partner?

We have two options for you.  You can take the Payment Protect for yourself if you are the only person named on the loan.  If you have a co-Borrower on your loan, you are each able to take out Payment Protect where so you are both protected. If there are co-borrowers on the loan it is not an option for only one of you to take out Payment Protect.

What if my co-borrower has to make a claim, but I don’t?

If the co-Borrower has taken out cover along with the main person on the loan, and the co-Borrower has experienced an unexpected life event covered by Payment Protect , the co-Borrower is within their rights to claim under this cover. 

If I already have income protection insurance, do I still need Payment Protect?

Income Protection benefits and policy terms differ by Insurer and we are unable to give you advice on this.  However, Payment Protect covers you for your Harmoney loan in case of an unexpected life event.   This cover does not cover other loans or credit you may have with other companies.   Please read the full terms and conditions.

Can I take our Payment Protect now and cancel is later?

No. The only way to way you can cancel Payment Protect is by repaying your loan in full.

What if I pay off my loan early?

If you repay your loan early, including taking out a Top Up, you will be rebated a proportion of your Payment Protect Fee. The calculation of this rebate is specified by the Credit Contract and Consumer Finance Act.

Who managed the claims process?

The claims process is managed in house by Harmoney claims specialists. This ensures that you experience is consistent and that the process is compliant with regulation.

What if I Top Up my loan and I already have Payment Protect on the first loan?

Because we re-write loans when you top up, we would pay back the first loan in its entirety and rebate you for the Payment Protect unused portion.   We would then write you a new loan and you are then able to take Payment Protect on your new loan for the new term and payment levels.  NB:  You cannot top up if you are in a waiver period of have a Payment Protect claim in process.

Can I make a Payment Protect claim if I am in arrears?

No. You must not have any payments that are in arrears for more than 15 days when you make a claim. Please read the full terms and conditions.

Is there a stand-down period before I can make a waiver application after I have taken out my loan?

There is a stand-down period of 14 days for making a claim based on disability. This does not apply for accidental injury. In the case of a redundancy event, you cannot claim within 30 days of your Payment Protect start date.

Please see Payment Protect terms.

What happens if I make a repayment that later qualifies to be waived?

If the Repayment is paid because an automatic payment or direct debit instruction is not cancelled or adjusted in time, the Repayment will not be refunded to you. However it will not be included when calculating the maximum number of repayments that you do not have to make. e.g. If you made a successful redundancy claim you would still be be eligible for 5 months of repayment waivers.

What documentation do I need to provide in case of death?

If you or your co-Borrower dies, and you and/or both of you are covered, a copy of the appropriate death certificate must be given to Harmoney as part of the Payment Protect claims process. Please read the full terms and conditions.

What constitutes a terminal illness?

A Terminal Illness means that you suffer any illness, medical condition, or accidental injury that stops you from being able to perform your usual occupation; and is likely to result in your death within 12 months from the date of an official medical certificate. Please read the full terms and conditions.

What documentation do I need to provide in case of terminal illness?

If you suffer a Terminal Illness, you need to provide a medical certificate to Harmoney as part of the claims process. The certificate must be issued and signed by a registered medical doctor in practice in New Zealand. Within the certificate, the doctor must state what your diagnosis is, state that it is making you unable to perform your job, and that it is likely to result in your death within 12 months. Please read the full terms and conditions.

What constitutes a disability?

Significant Disability means that you suffer any illness, medical condition, accidental injury that stops you from being able to perform your existing job.  Please read the full terms and conditions.

What documentation do I need to provide in case of disability?

If you suffer a disability, you need to provide a medical certificate to Harmoney as part of the claims process. The certificate must be issued and signed by a registered medical doctor in practice in New Zealand.  In it, the doctor must state what your condition is and that it is making you unable to perform your job.  Please read the full terms and conditions.

What constitutes redundancy?

Redundancy means you are made redundant from any position in which you were permanently employed and that your employment is terminated as a consequence of that redundancy. See Payment Protect terms.  Please read the full terms and conditionsPlease note: If you took out Payment Protect prior to June 17, 2019 you will find previous Payment Protect terms relevant to your repayment waiver application here

What documentation do I need to provide in case of redundancy?

If you are made redundant you need to provide a notice issues and signed by your employer that states you have been made redundant, and when your employment will end. You will also need to provide evidence that you were in employment for at least three months immediately before being made redundant.   Please read the full terms and conditions.