HSBC Bank Malta in collaboration with four of Malta's top insurance companies has launched Personal Loan Credit Insurance.

The insurance protects the amount outstanding of monthly instalments on one's personal loans from HSBC. It is designed to cover loan repayments in the event of an accident, sickness, involuntary unemployment or death.

"Through this insurance, which is optional and covers HSBC personal loans through the payment of an additional small monthly premium, the borrower knows that should circumstances change unexpectedly, loan repayments will be covered," the bank explained.

Clients are being offered various options. They can either take out a complete life, accident, sickness and unemployment insurance or select one of various options to suit their particular needs.

The life element of the cover will be provided by HSBC Life Assurance (Malta) Ltd while the accident, sickness and unemployment part of the cover will be provided by Elmo Insurance Ltd as the lead co-insurers with Atlas Insurance PCC Ltd, Citadel Insurance plc and GasanMamo Insurance Ltd as the other co-insurers subscribing to the policy.

"Following the new regulations allowing banks to sell certain types of insurance with credit products, this is the first time that such an inclusive/comprehensive insurance policy is being offered in Malta at such an advantageous price/premium and easily payable on a monthly basis instead of one lump annual sum," said Godfrey Swain, HSBC's head of personal financial services.

"HSBC wants to offer a growing wide choice of financial services to customers in Malta. Apart from being the first personal loans credit insurance product on the island, this is also the first time that unemployment insurance cover is being made available to the consumer in Malta."

He said the bank intended to follow up this launch of personal loan credit insurance for Flexicredit loans with similar products for credit card and home loans.

More information on 2380 2380, www.hsbc.com.mt or at HSBC branches.