(Guest)

Home insurance premium - bank

sir,

i had taken a NRI home loan with a nationalized bank back in 2007 for 15 lakhs and closed it in 2011 after paying it off fully and the loan was for 10 years..at that time, i know that the bank added some sort of a insurance to my account for the entire tenure.

now,

1. i recently came to know that ,whenever a loan is paid early before the tenure, the insurance premium for the remaining years will be refunded...is that true..how can i approach this now..though the account is closed in 2011,i have all the account details with me.
2. if the bank resits to look into the account details since it is already closed, how should i approach this..is it possible to request for a statement balance for a account that is closed so that i could have a proof of the transaction that shows the charge for insurance premium if i had to take this legally.

i understand it is very late that i came to know about this.but that doesnt mean that the bank can keep my balance insurance money with them.

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4 Replies

Kolla Gangadhar (Practicing Advocate since 1986) 26 September 2013

You write letter to Bank to provide Insurance document and find out from Insurance company terms land conditions o Policy.

Kumar Doab (FIN) 26 September 2013

Such policy is usually assigned to bank so that I n case of unfortunate event of death of the borrower bank can set of the balance of loan and tender remaining to legal heir/nominee.

You must have retained the copy of proposal form, assignment deed, and statement of bank a/c from which premium was being paid along with installment of the loan………….

If this bank a/c is regular, you can obtain all entries in pass book, a/c statement.

If loan has been fully paid, you may ask the bank to cancel the assignment, record it on policy bond and return the original policy bond to you………..

You can obtain policy a/c statement showing all premium payments made till date in the policy.

Most probably such policy would be term insurance and no amount is paid on maturity or cancellation.

Once you have gone thru the T&C as in policy schedule you can decide the action you would like to take.

The BM of the bank can also guide you properly.

(Guest)

sir,
are you saying, if it is a term insurance, then no refund on the premium on pro rate basis is expected, even if the loan gets paid off before the tenure for which the insurance is taken.
will it be the same case on home building insurance as well