stinaikar

I remember when I took an SBI home loan, they look some 13,000 rupees as insurance premium. They said it was a one-time payment. I don't remember what that insurance premium was for. I did not receive any documentation, nothing. Does anyone who took SBI home loan know what that amount was for. Is my home insured?

metal10

You know...from me also...they took a cheque saying it was for insurance..the insurance is for natural calamities. Like you i didnot receive any documents. when asked i was told to give the cheque no. So you should ask them give your cheque no. and check whether any amount has been deducted from your account.

Thanks!

stinaikar

They did deduct the amount from my account. I just wanted to know if my home is insured. If its insured against natural calamities, then that's great

ghodlur

This must have been for the one time home insurance and same thing has happened with me. I had given a cheque for an amount to SBI who had promised that they would encash it for the home insurance only after the final disbursement. But evn after the final loan amt disbursement one year down the line nothing happened and the cheque was neven debited from my savings account. Upon enquiry (Which took 3 weeks) they came up with a lame excuse that the cheque was lost and I was told to issue to new cheque. They did not bother to tell me the exact reason of cheque misplacement. I immediately gave instructions to my savings account for stop payment and issued a new cheque. After chasing them for 6 weeks, finally got the Insurance document in hand. Never give up friends, keep chasing SBI. Afterall they are sarkari bank, they are least bothered about your money. All ther are interested in is the EMI interest part.

stinaikar

So is your property covered against natural calamities? And if so, what is the coverage amount?

ghodlur

Yes it is covered against natural calamities and the coverage amount is equal to the 13L for a home loan of 17L. The premium paid was some 8.8K+. This was in 2008. But this was a one time premium valid for the period of home loan tenure of 15 yrs. But 4 yrs on I have repaid almost 60% of the loan. So ideally the premium is paid for 4+ years instead of original 15 years.

I had written to SBI regarding the disparity of the coverage amount and they asked me to contact National Insurance who never reverted back about the justification.

poorbuyer

What is the meaning of 'Insurance is the Subject matter of Solicitation'? It simply means that Insurance should not be SOLD but it has to be willingly accepted and solicitated.

SOLICITATION- It means 'Asking for'. We should 'Ask for' our own need rather than accepting it by compulsion.

Then how can banks make it mandatory for home loans? I suggest you approach RBI/IRDA ombudsman and complain. Even better cancel your policy within 15 days, without any charge.

However if you feel insurance is good, then go ahead and keep it.

stinaikar

They are not selling it. They only require it as a pre-condition to disburse the loan. You still have the choice to reject the insurance, in which case they retain the choice to not approve the loan.