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POSTED BY ON February 17, 2013 2:24 pm COMMENTS (9)
I recently took a loan of 40L from SBI & I was told that SBI general Insurance of around 26k for 240 months is mandatory. I have few questions please-
1. Is it mandatory?
2. Who gets to keep the policy documents?
3. In the event of a natural calamity, who gets the insurance money? What is the coverage value?
4. Does this insurance only cover the property or also the home valuables against theft?
5. If it does not cover theft, can I pay extra and get that covered as well?
6. What if I prepay the loan before 240 mnths? Does the policy lapse? Do i get any premium back?
Thanks in advance. Regards – Laxmi.
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Axis bank is insisting on Property insurance for full tenure . I proposed to give 3 year policy and gave them a 200 Rs bond that I will provide the extended cover after 3 years if I am extending the loan. I intend to close the loan in 3-4 years.
Is the full term mandatory and If I change the home loan bank will property insurance become in valid ?
Hi Kiran
All I know is that if you are talking about the property insurance (the house) , then its mandatory and whatever they are telling you must be correct.
But make sure you dont take the home loan insurance (which insures the loan)
Hello Laxmi kiran,
Did you get your policy documents from SBI General insurance? Whom did you contact for that?
I was told that i had to pay only one time premium. But i have not received any doc’s yet!!
Regards
Subin
SBI GENERAL INSURANCE HOME LOAN
Hi Laxmi, You should opt for cancellation of this home insurance policy. I recently stuck in same problem and got it terminated.
http://localhost/jagoforum2/amount-debited-from-sbi-maxgain-against-sbi-gen-property-insurance/6547/
Dear Laxmi, I’m trying to answer your query.
1. Is it mandatory?
Property insurance is mandatory but purchasing from a tie up insurer is not.
2. Who gets to keep the policy documents?
Poliucy docs. ‘ll be sent to you & you w’d have to keep it safely.
3. In the event of a natural calamity, who gets the insurance money? What is the coverage value?
You w’d have to file the claim & once the claim is passed the check ‘ll be issued in the name of SBI.
4. Does this insurance only cover the property or also the home valuables against theft?
It covers only building & not contents.
5. If it does not cover theft, can I pay extra and get that covered as well?
Yes, you can do so.
6. What if I prepay the loan before 240 mnths? Does the policy lapse? Do i get any premium back?
You can claim back the prem. but it ‘ll returned on pro rata basis as the single prem. was a discounted one.
Thanks
Ashal
Thanks a lot, Ashal! Appreciate the help..
Were you offered a home loan insurance or home insurance?
The former are single premium products for the the duration of the loan with decreasing cover with bank as nominee.
The latter is usually renewed yearly and covers natural disasters. You will be the nominee.
SBIs long term home insurance (which is what I think you are referring to) does not cover theft. Please look at the website the exclusions are very clear.
http://www.sbigeneral.in/Internet/faces/longtermhome?_adf.ctrl-state=8ns5iadod_24
Both are not mandatory however most banks insist on the former product. Certainly not mandatory to buy from the lending bank.
Policy documents will always be with you,.
Policies will last as long as they are valid and does not depend on prepayment. Why would you get your premium back! You have paid for the services of the insurer if a need arises.
Thank you..