SBI GENERAL INSURANCE PREMIUM DEBITED – Duration, Premium and Clauses

POSTED BY Sumanto ON September 6, 2013 10:57 pm COMMENTS (3)

Hi,

As with everybody, I see an amount of approx 23k got debited from my loan account, thus increasing the total principal loan amount. Detail:

Loan Sanctioned: 51 lakhs

Started paying the Premium from: April 2013

Total Duration: 15 years

SBI GENERAL INSURANCE PREMIUM DEBITED: August 27th, 2013

Primium amount Debited: 23k (10k + 10K + 3.2k) all on the same day

SBI Life Premium already paid at the time of sanction = 17.5k (need to pay the same for another 4 years)

 

Questions:

1. I was told abt the SBI Life at the time of loan sanction and I agreed to pay it seperately for 5 equal installments for 1st 5 years of loan tenure. But I was never told abt this SBI General Insurance. Is this the property insurance?

 

2. If yes, looking at the premium amount (of 23.2 k), for a property of 65 lakhs, any idea this Insurance will cover my property for how many years?

 

3. More importantly, this premium of 23.2 K is one time for the whole duration of the insurance or am I looking at this premium for every year (getting added to my loan principal)?

 

4. Will I get any kind of documents stating the details of the policy or to whom I need to contact to get those documents?

 

5. Can I find the mention of this amount being deducted, in my loan sanction letter? (I might have overlooked it)

Appreciate a quick response on all the above 5 points.

 

Please help me with the reply as I am staying outside India and getting thorugh the RACPC over the phone is like getting to talk to the Almighty in person 🙂

 

Regards,

Sumanto

3 replies on this article “SBI GENERAL INSURANCE PREMIUM DEBITED – Duration, Premium and Clauses”

  1. ashalanshu says:

    Dear Roshan, bank ‘ll ask you to purchase the property insurance only upto the loan valuation or at best property value. if you feel that insurance is falling short, you have the option to increase the cover by contacting the insurer to increase the cover against the extra payment of prem. by you.

    Thanks

    Ashal

  2. roshan says:

    Hello Ashal,

    Is it possible to request bank to give property insurance for a sum of 3*loan amount?

    eg: My loan amount is 25 Lakh. Can i request for a property insurance of 75 Lakh? Will the bank oblige or will they give property insurance for the loan amount only?

    Thanks,
    Roshan

  3. Dear Sumanto, I’m trying to answer your queries.

    1. I was told abt the SBI Life at the time of loan sanction and I agreed to pay it seperately for 5 equal installments for 1st 5 years of loan tenure. But I was never told abt this SBI General Insurance. Is this the property insurance?
    Yes it’s property insurance

    2. If yes, looking at the premium amount (of 23.2 k), for a property of 65 lakhs, any idea this Insurance will cover my property for how many years?
    Your loan term is the property insurance term.

    3. More importantly, this premium of 23.2 K is one time for the whole duration of the insurance or am I looking at this premium for every year (getting added to my loan principal)?
    One time for whole term.

    4. Will I get any kind of documents stating the details of the policy or to whom I need to contact to get those documents?
    Please contact your loan serving branch for policy docs.

    5. Can I find the mention of this amount being deducted, in my loan sanction letter? (I might have overlooked it)
    Please your loan agreement, it’s written there clearly.

    thanks

    Ashal

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