HSBC'S LATEST CREDIT-CARD insurance scheme is surely a sign of the times. Reacting to consumer concerns about being unable to meet monthly liabilities in the event of losing one's job, the bank is for the first time offering a repayment protection plan that gives a monthly benefit to customers who get the axe.
For a premium of HK$70 a month, Hong Kong residents are eligible for a monthly benefit of HK$1,000 for six months after losing their jobs or being unable to work, irrespective of their credit-card balance.
'We did a fair amount of research whilst we were designing the product,' says Ann Pearce, head of insurance products at HSBC. 'The feedback we got from customers is that there is a certain amount of stress associated with concern about unemployment and also about one's potential inability to work because of a disability. In this climate, people are concerned about job security.'
Choosing the HK$1,000 sum was carefully calculated, Ms Pearce says.
'For the vast majority of our customers, this [sum] is going to be more than adequate to cover spending on their cards,' she says.
Standard Chartered Bank offers similar insurance to all new cardholders - free for the first three months. For an ongoing premium of 0.4 per cent of monthly expenditure, 10 per cent of the outstanding credit card bill is paid for six months following unemployment or disability.
