SBI Life – RiNn Raksha

POSTED BY Raghav V ON April 25, 2013 12:10 pm COMMENTS (41)

Hi All,

I have taken a sbi maxgain home loan for my new property.To cover that property for any natural calamities or any unexpected event or mishap…which life cover for the property you shall suggest?? 

I didnt opt for SBI Life – RiNn Raksha during processing of my home loan…can you throw some details about this policy if this is a good option or any other better policy details..(premium and other highlights)…my sbi loan amount is 22,00,000 and my property purchase price is 35,00,000..




41 replies on this article “SBI Life – RiNn Raksha”

  1. Jainul says:

    I have a sbi term loan of 3142000/- for 25 yrs along with a rin raksha loan of 104000/- as one time premium.
    Now I have repaid the rin raksha loan amount within 4 years. I have raised a request to close the rin raksha loan account. But the bank official saying this account can not be closed as long as home loan account is active. If it is closed policy will be closed. I am bit confused as how it is possible? when I have paid 1 time premium for entire tenure of policy, how it will close abruptly after closing loan account for it?

  2. Ram says:

    i want to purchase Rin raksha policy of my Home loan 22 Lakh for 10 Year ,how much premium paid for 10 year

    1. Anuradha Singh says:

      Hello Mr. Ram, we won’t be able to solve your query. Please contact SBI Life for this.

      Thank You

  3. SHYAM says:

    I have Sanction privilege homo lone 2200000 for 29 years but rin raksha amount is 260640 one time is added to Sanction lone amount therefore bank told me Sanction lone amount is 2460640. I want to rin raksha policy for 5 years and after then l renue again 5 years . Can l Abel this facility. My age about 46 years. I want to repayment my total lone amount within 14 years.

    1. Hi SHYAM

      I am not clear on what is your question. Please repeat it with more clarity


  4. Amrut says:

    One can purchase term insurance policy instead of life insurance against loan and this term insurance policy can attach to the loan to cover the risk.

    1. Thanks for your comment Amrut

  5. Nilesh says:

    What reason should we provide for not taking Rin raksha insurance ?

    1. That you do not want it !

  6. KURIAN says:

    sir I had SBI LIFE RiNn Raksha insurance for my home loan for 22 lakhs, for which the premium amount was 14000 per year, for 5 years. I preclosed the loan in 2.5 years, and asked for the insurance also to be closed. so the bank debited 50000 from my account and has applied for reimbursement. is it normal procedure. does it take a long time for the refund.

    1. Why have they debited Rs 50,000 ?

      1. Kurian says:

        Thanks for the reply sir.
        To close the account they debited 50000 . Then I gave a request for refund. Now I received a refund of 17000 Rs..

        1. You should check with them on this . Why have they deducted the charges . Is it as per term and conditions

  7. mohan says:

    Me and my wife buy a wife is borrower and I am Co borrower.but I am responsible for emi from my is registered to my wife. Now I want take rinrakhsa policy from sbi.can my wife be policy holder.

  8. Girish Kumar says:

    can any body tell that what is the surrender value of the Rinn raksha policy. I have repaied whole of my loan amount in five years instead of its tenure of ten years, Now i want to surrender the policy. On the sebsite and in the policy as well clause of surrender value is mentined but how much value ,, it is not mentioned,
    Though this policy was imposed forcibely on me. Can we complaint about this undue force. and more over they have not mentioned the surrender value rates .. can this factor also be taken as complaint that bank is not transparent.
    Even I didnot know that this policy is financed. Lot of interest is also charged through it,
    Now my queries are :
    What is the surrender value of this policy.
    Can we put the case in obdxxxxxx regarding non transparency about surrender value.

    1. Hi Girish Kumar

      This is very specific query which you should follow up with the concerned authority only. We wont be able to comment on that


  9. Rahul says:

    Hi Manish,

    I have received Rinn Raksha policy for my home loan. But in policy document it is showing that same can be cancelled through the master policy holder only.

    Please suggest how to go about this as I think bank staff won’t be supportive also policy free look period has started already.


    1. Hi Rahul

      This is very specific query which you should follow up with the concerned authority only. We wont be able to comment on that


    2. Harshal says:

      Hi, you can cancel the RR policy by visiting a SBI Life branch. I have cancelled mine successfully.
      They would tell you things like you cannot close it for at least 2 years and so on, but don’t buy these arguments. You get a form from SBI life for cancellation of RR policy. Get the form endorsed from your bank (where you have taken the loan) and submit the form to the SBI life office. (They ask for an NOC from the bank, but it is actually not required. You get the account closure form stamped from the bank with comments that they do not have any objection to close the policy – this is good enough).

      Please be stubborn in mentioning that you must close the policy, as they try various ways to persuade you to keep the policy.

      Hope this helps.

  10. Kavitha says:

    Even my home loan is tied to the ‘SBI Life RiNn Raksha’ insurance plan and I am trying to fore-close my home loan. e
    However, the bank says i have pay a total premium of 40k for the rinn raksha inorder to close my loan account.
    Do I have an option to cancel this ‘SBI Life RiNn Raksha plan?

    1. No , you will have to first clear the money for that policy !

  11. RahulJadhav says: is with everybody, I too was forced to take this Rinn raksha policy . Now I have prepaid all the loan( tenure was 15 yrs but since the home loan was small i prepaid all within 5 years ), the bank is not giving me the documents unless I pay the remaining Rinn raksha amount ?
    How do I go about it ? Please suggest
    Loan amount : – 9,40,000 sanctioned Oct. 2011 paid all today 13.01.2016
    Rinn Raksha remaining as per statement – Rs. 25,411 .

    1. You dont have the documents till date ?

  12. Ashwini says:

    I have taken SBI home loan of 14 lakh and bank employees forced me to took Rinn raksha policy covering this amount. I have paid premium for 1 year and I missed second premium. If I don’t pay this premium what will happen,this policy will be lapsed or not

  13. Tricia says:

    hi….I had taken a loan of 7 lacs. Now after the loan has been sanctioned I am told about this “RiNn Raksha” which in any case states compulsory. They tell me it is a one time payment which is non-refundable. Kindly tell me if this is true…and why was it not brought to me notice beforehand.

  14. Rajan says:

    I was sanctioned a PERSONAL LOAN of Rs. 3,00,000 by SBI Amberpet, Hyderabad. I was compelled to take a Rin Raksha policy, with the assurance that it is only one time payment of Rs. 5,000 plus. The fact is that I have a heart problem and not covered under this policy, as I read through the document. Still I was told to take this policy. Is it necessary to take a policy even for Personal Loan of 3 lacs? While I am not ‘eligible’ considering the heart and diabetic condition, as stipulated in the document, how can I deal with it. Kindly advice.

    1. There is no compulsion to take it . Dont take it

  15. anshudeep says:


    Pardon me if if this is not the right thread to post my query.

    Actually I have a Rin Rakhsha policy covering my Maxgain Home Loan to be paid in 5 yearly installments.

    Is there a way to make the premium payment online? As per SBI Life Rinn Raksha premium can only be wait by physically submitting the cheque/DD/Cash at the nearest SBI Life office.

    If there is a possibility to make the payment online could anyone pls share the link for the same?

    Thanks and Regards,

  16. Dear Ravi, for cancellation, please contact SBI Life not SBI Bank. The prem. amount ‘l be returned to you by cheque & you can deposit the same into your Max Gain account to bring down the interest outgo.



  17. Raghav V says:

    Hi All,

    A very Good morning !!!

    I have been forced to take the below policy with my maxgain HL.Kindly let me know what I have to do to erradicate the interest or any other approach to close this quickly…fyi: Till date i havent paid a single penny from my wallet towards this account.Hope you understand and help me out.The ROI is also 10.7% not 9.95 %??

    Account Number xxxxxxxxxxxxxxxx
    Description MAXGAIN SURAKSHA
    Limit 46,350.00
    Drawing Power 9,385.00
    Outstanding Amount 9,385.00
    Rate of Interest 10.7
    Currency INR
    C.Y.YTD Interest 115.0
    P.Y.YTD Interest 0.0

    Last 10 Transactions:
    Date (Value Date) Narration Ref. No. Debit Credit
    31-Jul-2013 (31-Jul-2013) PART PERIOD INTER 85.00
    30-Jun-2013 (30-Jun-2013) PART PERIOD INTER 30.00
    20-Jun-2013 (20-Jun-2013) DEBIT TRANSFER
    TRANSFER TO 30322777921 SBI LIFE INSURANCE CO 9,270.00

    1. Jayaprakash says:

      Hi ragav I am having the same problem. Got any solution.

  18. Ravi Gupta says:

    Hi Ashal,
    I needed to know within the free lockin period, is it that we need to visit the nearest SBI bank and cancel the policy.
    Are there any forms we need to fill in? Steps to cancel the policy.
    Also since in Rinn Raksha Policy as you stated premium paid, in most cases, is added to the loan amount : that says, you’d be paying an interest on the single lump-some premium for the whole tenure of your loan!
    So once cancelled will it automatically reduce the principle or do we again need to submit the cancelled policy confirmation to the SBI HL Dept.

  19. Prakash Jena says:

    Thank you very much Asal. I will cancel the policy once i get it.

  20. Dear Prakash, the free look period starts from the day, the policy is handed over to the customer. In your case, as the policy is not with you, your free look period is still intact.



  21. Prakash Jena says:

    Hi Asal,

    How can i know that the free lock period has not been gone? They told me today that they have the policy document with them.

    is the free lock period starts when customer receive the document or when the policy deliver from SBI life insurance office?

    Thank you.


  22. Dear Prakash, first of all demand the policy from SBI Life, instead of your bank as Insurer is SBI Life here & it’s bound to give you the policy. Once the policy is there with you. Cancel it within the free look period. Bank Staff can’t do anything for your cancellation.



  23. Prakash Jena says:


    I had forced to take this “Rin Raksha” life insurance policy and they have not yet given the policy document to me. When i asked to cancel the policy, they are not willing to do it and sating that the policy document is ready.

    I am still fighting with them and decided to go to “Banking ombudsman” if they will not agree to cancel it.

    Don’t know what will be the result.

    Can you guys suggest me what should i do?


  24. Syamantak says:

    check with them if this Rinn Raksha is a life insurance or a property insurance. if its a life insurance, then as the name suggests , it actually covers the loan (Rinn). take my simple word, this policy would not be for your benefit and is rather for the bank to have a ‘rakasha’ on the loan amount, in case of any eventuality.

    In most cases these type of individual are covered upto “Loan amount” . in case of a sad demise, bank as a beneficiary would take their ‘remaining’ part of the principle amount and pay off the excess money to the family.

    why I suggest not to go for it ,

    1. single premium : in a competitive market, you should never buy a single premium term insurance. you might end up paying more premium
    2. premium paid, in most cases, is added to the loan amount : that says, you’d be paying an interest on the single lump-some premium for the whole tenure of your loan!
    3. too low life cover: Being a group policy, they generally do not gove you an option to chose your cover and only covers upto the loan amount. in case of death, after deducting the principle, remaining amount to the family stands pretty low
    4. Once taken, you have no choice to discontinue with it unless you return in back within the ‘free lock period’

    all of above are my own analysis after I was offered a similar plan by HDFC while getting my home loan from them

  25. Dear Raghav, property insurance is different than life insurance. For property insurance, SBI ‘ll provide you. For life insurance, please purchase a term cover of at least 15 times of your yly income + home loan.



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