ANY loan protection policies offered by Irish banks contain fair get out clauses buried in the fine print and can be very expensive, the Consumers' Association of Ireland said last night.

Revealing the results of a survey of the main banks in the Irish market, the watchdog group said it wanted to expose a number of practices that allowed banks to avoid paying out to customers.

In the case of insurance payable if the policyholder loses his or her job:

. Policy holders are not covered for a specified time after signing the contract and starting their payments; with Ulster Bank this period lasts four months, most of the others are three months.

. Lenders operate a waiting period of a month; so policy holders must be out of work for at least that continuous period of time before they can make a claim.

. There is a maximum of l2 monthly payments allowed for each claim; policy holders must then wait six months before they can make another claim.

. Four lenders - ACC, Irish Permanent, TSB and Ulster Bank - refuse employment loss cover to anyone on a fixed term contract. The others will only offer's cover for the remaining portion of the contract.

The Consumers' Association also issued other findings relating to all types of loan protection policies, including those payable in the case of critical illness and disability.

It reported that a one year, £1,000 loan costs an extra £3 to £5 a month with insurance cover, but a five year, £5,000 loan costs an extra £4 to £14 na month. The survey found that the interest earned on the £1,000 loan ranged from £2 to £5, while the interest earned on the five year protection policy could touch £200.

"All lenders restrict the method of payment. No lender allows an annual lump sum payment and only four lenders ACC, Bank of Ireland, National Irish Bank and Ulster Bank allow you to pay a lump sum at the start of the loan," the Consumers' Association said.

"At least 30 per cent of the first year's premium is taken in commission. However, most lenders refuse to reveal the level of commission earned."

The Consumers' Association worried the banks' clients to read carefully the small print in every insurance contract to try to avoid "a number of highly unfair get out clauses in favour of the insurer".