Property Insurance in ICICI Bank name and not mine while taking Home loan

POSTED BY Raja ON March 7, 2014 7:37 pm ONE COMMENT

I have recently taken a home loan from ICICI bank. They insisted that I should get property insurance too, so accordingly I gave them an additional DD for property insurance in favor of the insurance company.

Now I am made to understand that the property insurance will be in ICICI name and not in my name. At the time of loan closure I will have to get it endorsed in my name from the insurance company.

I am also not given a copy of the property insurance for my reference. How do I even know that the DD which I issued for property insurance was actually used to get an insurance against my property? What do you suggest I do in this case? Is the bank entitled to do this and should I receive a copy of the insurance?

One reply on this article “Property Insurance in ICICI Bank name and not mine while taking Home loan”

  1. ashalanshu says:

    Dear Raja, please file a written complaint with your ICICI bank’s branch. the policy should be in your name and only assigned to bank. You should get the original policy not the copy of it.

    In my personal case, SBI provided me the Home Insurance from New India. The policy is with me and it’s assigned to SBI. Assignment in simple language means that in case of claim, the money ‘ll be paid to the assignee and after deducting it’s own due amount (loan), the balance if any, ‘ll be returned to you, the policy holder.

    Thanks

    Ashal

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