Insurance on housing loan amount on house

685 votes

If the housing loan was covered by a life/credit-linked insurance policy and the required premiums were paid for the last 18 months, the bank’s refusal to waive or settle the outstanding loan should not be accepted without examining the policy terms and the reason for rejection. The borrower should first obtain the complete insurance policy/certificate, premium payment records, claim documents and the bank’s written reason for rejecting the claim. A written claim/grievance should be submitted to the concerned insurance company and its Grievance Redressal Officer. If the insurer does not resolve the complaint satisfactorily, the matter can be escalated through IRDAI’s Bima Bharosa grievance mechanism and, where applicable, the Insurance Ombudsman. If the dispute is also with the bank regarding processing, servicing or implementation of the insurance-linked loan arrangement, a separate written grievance should be raised with the bank. The exact remedy will depend upon the policy coverage, insured event, exclusions and the reason for the bank’s refusal. For detailed legal advice and representation, you may contact us through our LawRato profile.

Advocate Mrudhula Jahnavi LawRato

501 votes

The insurance company will have indemnity their responsibility on the death of the borrower untimely subject to conditions. Such an insurance policy will be of a general insurance company's scheme and in such schemes policy must be renewed every year. You are advised to approach a good Advocate in your locality with all particulars.

Advocate Kadagala Rambabu Naidu LawRato