Why it's worth having...

Since your novated lease payments come directly out of your pay each month, a change in employment can make it pretty tough to stay on top of the payments.
Lease Protection Insurance provides cover in the following scenarios where your employment is impacted:
•    Involuntary dismissal or redundancy
•    Mental or functional disorder
•    Sudden terminal illness or permanent injury
•    Workers’ compensation claim
•    Carer requirements
•    Expatriate move
•    Divorce or separation
•    Death of a spouse or child
•    Birth of a child

Benefits

Lease payments

The Lease payment benefit enables the following:
•    Lease payments for up to 10 months of unemployment, or until you find a new job, or until the original end date of your contract, whichever happens first; and
•    A $400 monthly payment to cover your car running costs (petrol, insurance, etc.), up to $4,000 in total payments

Vehicle hand back

The Vehicle Hand Back benefit lets you return your car and have the remaining financed amount paid off at any point during your claim, just as long as it’s before your 10th and final lease payment.

If you’d rather keep the car instead of handing it back, you’ll need to pay the financier the car’s trade-in value at the time of the claim. Your insurance will then cover the difference between that trade-in value and what’s still left on your financed amount.

If your claim is due to a sudden and terminal illness, permanent injury, or an expatriate move, you can only choose the hand-back option.

If your claim is because of involuntary dismissal or redundancy, you’ll need to receive at least three lease payments from the policy before you can choose to hand the car back.

The maximum amount payable during the term for the cover for all payments is $50,000

What's not included...

The policy doesn't apply if you lose your job because of voluntary redundancy, resignation, retirement or abandonment of employment. It also doesn't cover dismissal due to misconduct, or losing your job because of alcoholism, drug addiction or other influence.

Lease Protection Insurance is also not valid if you knew about your involuntary unemployment before taking out the policy, or if you lose your job in the first 30 days of having the policy.

The fine print

These examples are only provided as a summary and are not exhaustive. Please read the Product Disclosure Statement  for all of the important product terms and conditions and other info that will be relevant for you.

For example

Two years into her four-year lease, Leah’s department is downsized and she’s made involuntarily redundant. After 30 days she hasn’t been able to find a new job, so her Lease Protection Insurance kicks-in.

From that point, her monthly lease payments are taken care of, and she gets paid $400 a month to cover the cost of driving. Leah can claim these payments for up to 10 months, taking away a whole lot of stress while she looks for work.

After three months of payments, Leah decides she doesn’t need the car anymore and goes for the ‘handback option’. She hands back the car to the insurer who arranges a full payout of the outstanding lease amount.

The maximum amount that Leah can claim during her period of insurance is $50,000 (this is inclusive of all amounts, including the payout amount, the lease payments and the running costs payments made by the insurer to Leah).

Important documents

If you’re having trouble accessing any of these documents, get in touch and Oly will organise copies for you by another method.

For your reference Oly suggests hanging onto copies of these Product Disclosure Statements and Financial Services Guides with your lease documentation.