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Target Market Determination

About this Document

This Target Market Determination (TMD) describes who the Coverpay product may be suitable for based on likely needs, objectives, and financial situation of customers in the product’s target market.

This document is not a full summary of the product’s terms and conditions and is not intended to provide financial advice. Customers should refer to the relevant Coverpay User Terms and Conditions before signing up to use our product.

In this document, a reference to “we”, “us” and “our” means Coverpay Pty Ltd ACN 644 007 081. 

 This TMD is effective 19 January 2023.

Application of this TMD

This TMD applies to Coverpay Personal Lines Plans (The Product) and is effective from 19 January 2023. Personal Lines Plans means instalment plans for the payment of premiums for personal lines insurance, that is, insurance taken out for personal, domestic or household purposes.

This TMD does not apply to instalment plans for the payment of premiums relating to policies taken out wholly or predominantly for business purposes.

Class of customers that fall within this target market

The target market for The Product is customers who would like to pay for their insurance in instalments.

The customer’s likely objectives in using The Product would be to spread the payment of premium over instalments that would otherwise have to be paid up front in full including using traditional credit products. This could be for convenience or to assist in budgeting by spreading the expense over smaller instalment payments or having the flexibility to pay out their plan early to avoid future fees.

Eligibility requirements

The key eligibility requirements for The Product are:

  • be an individual who is at least 18 years old;
  • be an Australian citizen;
  • not suffering an insolvency event as defined in the user terms ;
  • be capable of entering into a legally binding contract;
  • have identification documents that meet our requirements for the purposes of conducting identification checks in accordance with our practices and any applicable laws;
  • have an Australian residential address;
  • have a valid email address and Australian mobile number ; and
  • have a credit card or debit card.

Product Attributes

The key attributes of The Product are:

  • Pay for your insurance in instalments.
  • No charging of interest.
  • A Plan Management Fee is payable with each instalment.
  • A Plan Activation Fee may be payable with your first instalment.
  • No Missed Payment Fees. You have 3 days to make-up a missed payment.
  • A Default Fee is added to an outstanding amount if you default. You are in default if you do not make-up a missed payment within 3 days.
  • Pay-out your plan at any time to avoid future Plan Management Fees.
  • Variable plan, invoice and platform limits apply.
  • No credit checks and no additional security or guarantees required.

Distribution of this Product

The Product is only distributed by us through merchants. Merchants are either insurers (being APRA regulated entities) or intermediaries (being Australian Financial Services Licensees or their authorised representatives). 

 The Product is not available directly from us. 

All applications for The Product must be made via the Coverpay application and payment portal.

Reviewing this TMD 

We will review this TMD in accordance with the below:

Initial review 5 October 2022
Periodic reviews At least every 2 years from the initial review
Review triggers or events Any of the below triggers may indicate that the TMD is no longer appropriate and a review of the TMD is to be undertaken:
  • A material change to the design or distribution of The Product
  • A material change to the eligibility requirements for The Product
  • Significant dealing outside of the target market 
  • Material and relevant changes in our product suitability metrics

Where a review trigger has occurred, this TMD will be reviewed within 10 business days.

Monitoring and reporting

We will continuously monitor that The Product is distributed in accordance with this TMD. All distributors must report in writing to us within 10 business days, any compliant relating to The Product, and any significant dealing in respect of The Product. Distributors are also required to keep records of certain information in relation to The Product for a period of up to seven years. 

We will keep complete records of our decisions in respect of producing and reviewing this TMD and the review triggers.