Mortgage damage insurance with banks does not protect assets: Condusef These insurances are practically 'useless', said Mario Di Costanzo, president of Condusef.

The "damage insurance" associated with mortgages granted by banks does not comply with the assets of the people, so it is practically useless, Mario Di Costanzo, president of the National Commission for Protection and Defense Users of Financial Services (Condusef)

"Damage insurance works inefficiently, the damage insurance quote is the restitution of the property, which does not meet the requirements for people's assets."

According to the rules of the Condus, there are still 356 cases that have not been resolved due to the contracting of insurance affected by the earthquakes of September 19 in Mexico City, in many cases because there are still no DRO opinions.

"The sums insured are equal to the value of the property, since the cost of the premium is calculated based on the risk." In most cases, the sum insured is less than the amount of the loan, which was initially uncovered to the accredited ".

Therefore, the Condusef in meetings held with the Association of Banks of Mexico, the Mexican Association of Insurance Institutions and the Ministry of Finance has asked to change the type of insurance so that the assets of the people are covered.

Damage insurance, unprotected
According to an analysis carried out by the Condusef with 20 real customer records that have insurance coverage from nine insurers -which were hired in November 2017-, in case of a crime, in 13 of the 20 cases the insurance does not cover the 100 percent of the credits and the user loses the down payment, the payments made and their property.

In the case of BBVA Bancomer, in all cases, the owner of the house, the down payment and the monthly installments still paid, 15 years paying, the type of insurance offered does not cover the credit or the patrimony of the people.

Bancomer holds 23 percent of the loans in Mexico City, with a portfolio of 38 thousand 703 million pesos.


Source: El Financiero / Jeanette Leyva. 5 Sep 2018.