Insurance

Unemployment Insurance

With unemployment insurance, holders of cash loans and installment cards can secure coverage for their loan obligations in the event of job loss. Apply now and protect your financial stability!
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Terms

Insured Party: Holders of consumer loans and credit cards

Beneficiary: Kapital Bank OJSC

Covered Insurance Risk: In the event that the Insured loses their employment due to the risks listed below during the insurance period, the Beneficiary’s credit obligations on behalf of the Insured will be covered starting from the date of job loss.

Insurance coverage amount: If the Insured has outstanding debt to the Bank, a maximum of 200 AZN per month will be paid towards the monthly credit card debt, for a maximum period of 5 months.

Covered Risks

Loss of employment by the Insured due to the following reasons: Liquidation of the company Downsizing or staff reduction

info

In the event of job loss due to company closure, downsizing, or elimination of staff positions, you can reduce your financial burden with the unemployment insurance product offered by Kapital Bank/Birbank. If any of the listed risks occur during the insurance period, this insurance will cover your existing loan obligations from the moment you lose your job. Only customers who have obtained a personal loan or installment card through Kapital Bank/Birbank are eligible for unemployment insurance. For installment cards, the insurance certificate becomes effective upon the first use of the card and remains valid until the end of the credit line agreement. For cash loans, the insurance certificate is activated on the day the loan agreement is signed and remains valid for 1 year. This insurance product includes an unconditional waiting period of 1 month. No insurance payments are made for incidents occurring during this period. Additionally, loans taken or credit lines opened after the occurrence of the insured event are not covered. Loans of employees on probation and cases where the insured has worked less than 6 months at their current employer are also excluded from coverage. Only payments related to the principal loan amount are covered; any penalties or overdue interest accumulated during the waiting period will not be paid. If you want to take precautionary steps against the risk of unemployment and secure your financial safety, you can visit the nearest Kapital Bank/Birbank branch and apply for unemployment insurance right away.

FAQ
What is unemployment insurance and who can benefit from it?

Unemployment insurance is a type of coverage that provides financial support to customers who face difficulty meeting their credit obligations due to unexpected termination of employment. Offered by Kapital Bank/Birbank, this product is exclusively designed for individuals with personal loans or installment credit cards. If the insured becomes unemployed, the insurance helps cover part or all of their monthly loan payments for a certain period, thereby supporting financial stability.

Who is eligible to apply for unemployment insurance?

Only individuals who have obtained a personal loan or an installment credit card from Kapital Bank/Birbank and currently hold without an active debt may apply for this insurance. To activate the coverage, the insured’s job loss must occur during the policy period and under eligible conditions as defined by the insurance terms. Self-employed individuals, entrepreneurs, or those who leave their jobs voluntarily are not eligible for this insurance product.

In which cases does unemployment insurance provide compensation?

The insurance benefit is activated only under specific conditions, including:

  • Full liquidation of the company
  • Staff reductions due to organizational restructuring
  • Involuntary termination due to position elimination or company downsizing

These circumstances must be officially documented. If an employee resigns voluntarily, is dismissed due to disciplinary action, or if a fixed-term contract simply expires, the insurance coverage does not apply.

What is the payout amount and duration of coverage?

Once unemployment is officially confirmed, the insurance company pays a customer's monthly credit obligation to Kapital Bank/Birbank. The maximum monthly payout is 200 AZN, and coverage is provided for up to 5 months. For example, if a customer's monthly loan payment is 160 AZN, this amount will be covered for 5 months. If the monthly obligation is 250 AZN, only 200 AZN will be paid by the insurance, and the remaining 50 AZN will remain the customer’s responsibility.

How is unemployment confirmed and what documents are required?

To prove unemployment, the customer must submit the following documents to the insurance company:

  • Official notice of employment termination
  • A certificate from a company confirming closure or staff downsizing
  • Document from the state employment agency confirming unemployment status (if required)
  • Copy of ID and loan agreement

Once these documents are submitted, the insurance company verifies them and makes a payment decision.

Which loans and cards are covered by unemployment insurance?

Unemployment insurance applies only to personal loans and installment cards issued by Kapital Bank/Birbank. Customers holding these products are automatically considered eligible. Mortgages, business loans, or other commercial debts are not covered under this insurance.

When does the insurance coverage become effective?

The insurance coverage becomes active from the date the customer agrees to the insurance terms for their loan or installment card. This date is clearly stated in the insurance agreement. The unemployment must occur after this date and fall within the specified risk conditions. If the insurance period has expired or the unemployment occurred before coverage started, no payment will be made.

How can I apply for unemployment insurance?

In the event of unemployment, a customer must notify the insurance provider either by visiting a Kapital Bank/Birbank branch or submitting an online application form. The required documents mentioned above must also be submitted. After evaluation, the insurance company will make a decision within 7–10 business days and notify the customer.

When is the insurance payment transferred to my account?

Once the application is approved and all documents are verified, the insurance payment is transferred to the customer’s bank account at the beginning of the following month or within the timeframe stated in the insurance contract. Payments are made monthly and can continue for a maximum of 5 months. At the end of each month, updated proof of unemployment may be required to continue payments.

Are all reasons for job loss covered under this insurance?

No. Unemployment insurance only covers specific and clearly defined reasons for job loss, such as:

  • Closure of the company
  • Downsizing or elimination of positions

The following situations are not covered:

  • Voluntary resignation
  • Expiration of a fixed-term employment contract
  • Termination due to disciplinary violations
  • Dismissal due to illegal acts or criminal offenses

These reasons are excluded from coverage, and claims based on them will not be compensated.