Premium for SBI General insurance deducted against my home loan – Can I cancel it ?

POSTED BY coolguy ON October 26, 2013 12:23 am ONE COMMENT

Hi Friends / Admin

Recently amount of around 24000 INR was deducted from account for SBI general insurance against my house loan of rs 31 lac INR. Loan was sanctioned to me in April 2013. Policy tenure is 20 yrs which is same as loan tenure.

Amount for SBI general insurance is deducted on 30th Sep 2013.

I have following questions

1) Is SBI general insurance is compulsory ? My friends and relatives have taken loan from other banks like HDFC bank but HDFC did not ask for any property insurance. Is it only compulsory in SBI and subsidiary banks.

2) Can I cancel the policy from SBI general insurance and take policy from some other company ? What will be the procedure for cancellation of policy. Many times I have talked to Bank manager but did not get satisfactory answer.

3) Does anyone have any idea of general insurance from other companies. How much will be the premium from other companies for same amount and tenure.

4) If I make prepayment of loan (for example say 2 yrs) then will this policy will be valid of remaining period or not. If not then will I get any premium back or not?

Your prompt response for these questions will be really great help to me. I am really tired of talking to bank people

Thanks

Ashu

One reply on this article “Premium for SBI General insurance deducted against my home loan – Can I cancel it ?”

  1. ashalanshu says:

    Dear Ashu, let me try to answer your queries.

    1) Is SBI general insurance is compulsory ? My friends and relatives have taken loan from other banks like HDFC bank but HDFC did not ask for any property insurance. Is it only compulsory in SBI and subsidiary banks. Property insurance is also required to protect your own financial risk againat loss of property.

    2) Can I cancel the policy from SBI general insurance and take policy from some other company ? What will be the procedure for cancellation of policy. Many times I have talked to Bank manager but did not get satisfactory answer.
    Yes you can cancel the policy. Please contact SBI Gen. Ins. Co. for cancellation. You w’d have to apply in written for cancellation policy.

    3) Does anyone have any idea of general insurance from other companies. How much will be the premium from other companies for same amount and tenure.
    The prem. is more or less same across all insurer.

    4) If I make prepayment of loan (for example say 2 yrs) then will this policy will be valid of remaining period or not. If not then will I get any premium back or not?
    Policy ‘ll be valid for remaining period. Policy is covering your property against natural calamities and it has nothing to do with your loan.

    Thanks

    Ashal

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