Due to a significant in death claims, our insurers have had to increase the cost of the Member Death Benefit Indemnity (MDBI) premium with effect from 1st January 2024 to €8 a month or €96 per annum.
Why Is The Premium Increasing?
Every year our insurers review the MDBI program with Capital Credit Union. They review the composition of membership, the benefits (claims) paid, and to sustain the program for the future, they provide a rate for the forthcoming year. They share our objective of keeping the annual cost stable, to ensure the program remains open to new members and affordable.
The reason for the increased premium is because the costs of claims for our insurers has almost doubled in just two years from €378,864 in 2021 to €629,781 in 2023.
What Does This Mean?
This will result in the monthly cost rising from €6 to €8 and the annual cost rising from €72 to €96. The change will come into effect from 1st January 2024 for all existing and new members of the MDBI program.
While an increased premium is never welcome, we are satisfied that the price remains competitive. We also reviewed the market and found that MDBI is still by far the most competitive option available to members for this type of insurance.
What Happens Next?
This will be communicated to existing members by post or email and all new participants in the scheme will be informed of the new premium.
If you wish to remain in the MDBI program, you do not need to take any action – your renewal will occur automatically. As participation in MDBI is optional, you can withdraw from the program at any time by writing to us, and we will cease your premium deduction.
If you have any queries about the MDBI scheme, please contact us on info@capitalcu.ie or (01) 299 0400.
If you are not currently in the scheme but would like to sign up, please click here.
