Many people have to take loans to fulfill an urgent need. But barring few in most of them do not know that their loan comes coupled with an insurance they did not ask for. This is the PPI or Payment Protection Insurance which is a policy, which will cover the monthly credit card payments or the loan amounts; in case said person becomes critically ill or is unemployed due to some circumstances. This insurance policy will help one get cover the monthly installments for maximum of 12 months.

Although there are rules, which the banks or the brokers need to adhere to while doing this kind of insurance, but often those rules are ignored. Large commission usually prompts the insurance agent to add the protection insurance amount to the monthly installments without even intimating the customer. Many of the customers are not even told that this insurance is completely optional and not opting for one does not decrease the chance of getting loan. But all these customers can claim for their money back which they have been paying along with their installments. There are many provisions which help the customers in this respect. PPI is not essential to be coupled with the loan amount and should be taken only after considering all the related aspects.