Bank charges penalty for late providing vehicle insurance copy
jeevan deshpande
(Querist) 30 January 2014
This query is : Resolved
sir, with due respect i want to put my query as , i was taken two wheeler loan from gov bank where i am making reqular repayment of loan amount, but due to some professional work i am out of city for six month when my vehicle insurance period is expired. the banker is charged me penalty for no submitting reinsurance copy. i am ready to submit but they are not ready to reverse the penalty charges, pl guide me further.
Devajyoti Barman
(Expert) 30 January 2014
Refer to the loan agreement.
If there is such clause of penalty for not comlying with govt.regulations they are not bound to reverse it.
ajay sethi
(Expert) 30 January 2014
pay the penalty amount under protest . it was your mistake in not renewing insurance of vehicle on time
Advocate. Arunagiri
(Expert) 30 January 2014
Normaly the Govt Banks do not charge penalty for the non production of the insurance papers in time.
On the other hand, the insurance itself will be paid by the Govt bank, and the charges will be deducted from your bank account, maintained with them.
Rajendra K Goyal
(Expert) 30 January 2014
Banks have a general clause to charge panel interest / penalty for non observing of the conditions of the loan.
Send them the copy and request them to refund the charges taken.
