Insurance setup

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Insurance setup

You can configure the various types of insurance that are used by the bank for their business purpose. You can also configure the insurance types and the object to which the insurance is applicable, like Application, Party and Collateral. It helps you to configure a formula for premium calculation and associate it to each insurance type and configure the different insurance types that are offered as part of a Loan Product.

Prerequisites

The following is the prerequisite for Insurance:

  • Calculation Sets must be defined.

Steps

Perform the following steps to configure insurance:

  1. Log in to your Salesforce account.

  2. Go to App Launcher and select Origination Configuration.

  3. Go to Insurance Setup and select Insurance Definition.

    In the page that appears, the list of Insurance Definition Name is displayed.

  4. Select on New Insurance Definition.

    The Insurance Definition Edit page is displayed.

  5. Specify the required field values as described in the field reference table.

  6. Select Save.

  7. In the page that appears, go to Related.

  8. In Related go to Product Insurance Associations section and select New Product Insurance Associations.

    The Product Insurance Associations Edit page is displayed.

  9. Search and select the required CL Product.

  10. Select Save.

Field reference

Field nameDescription
Insurance Definition Name

Name of the insurance to be defined, for example:

  • Life Insurance

  • Health Insurance

  • Disability Insurance

Object

This field stores the information for object type on which insurance needs to be defined, such as:

  • Application

  • Party

  • Application Collateral

Premium TypeThis field is used to identify, whether the premium is calculated for single borrower or for a combination of borrowers. It depends on the Object Type selected.
 Add to Loan Account  If this checkbox is selected the insurance premium amount is added to loan amount.
 Calculation Set

 This field helps you select the required Calculation Set Name, such as: 

  • Life and Health Insurance Premium

  • Life Insurance Premium

  • Health Insurance Premium

This field is used for selecting the expressions for a particular insurance definition. Different insurance definitions can have different formula to calculate premium amount.