Dear Sir
Recently I opted for a Home Loan of Rs 28 Lakhs from Canara Bank to Buy a Flat for 20 yrs. Without any information the Bank Deducted the premium from the account. on Asking about the same, I was told by the officials that it was for Property Insurance and is mandatory. Since I was not Informed, I did not maintained the Amount in the Account and when I deposited the first EMI, rather deducting the same the Insurance Premium was deducted along with the penilty……
My very first question is that…. Is the property Insurance is Mandatory and the bank deduct the charges without prior intimation and apply penalties in case of delays?
Now since Rs 12,500 deducted on the account of property insurance the bank said that the policy document shall remain with them and shall not be provided to me.
My Second question is ……. Can the bank retain the policy with them?
Further, the bank officials are now pressurizing to get the Loan Insurance done and said it is must else they will be charging penalties on the delay…….
My third question is……. that, Can the bank pressurize an individual to buy the Loan Insurance and penalize on delay? Can an individual buy the policy having regular yearly premium rather buying single premium product? Is is mandatory to buy the Loan Insurance Product from the Canara Bank only or an individual can buy from other company like LIC or Aviva or HDFC etc…?
I would like to seek clarification at the earliest from your side on the above mentioned issues…..
Thanks
Dr. Arvind K Jain