Hello,

I have got my loan amount disbursed from the ICICI bank, when sanctioning the loan amount bank executive told me that i have to take the loan insurance and its mandatory.

Now after talking to various teams in ICICI bank i came to know that it is not mandatory insurance.

This insurance covers the EMI's incase of job loss, loan amount coverage incase of any accident etc etc...

I do not need this insurance and would like to have you opionion regarding the process i should follow to get it reverted.

The insurance amount is already charged in the first EMI.
My loan is NRI home loan and wan processed through the bank manager of my local branch.

1) Do i follow the process through bank manager/executive who processed my loan

2) instead of option 1 approach the central home loan/lombard insurance team through helpline

or raise the cases through both option 1 and 2

also please suggest if you have any knowledge regarding this that may help me...

1)
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  • Pretty much immediately send an email for cancellation of the insurance ploicy. You have a freelook period of 15 days after receiving the policy document. Mention the receipt date as well. I have a whole story to tell how you can get the premium paid back, will try and find out some time to explain that here. Key is to send for caancellation during the free look period for now shoot an email to customer care and cancel the policy.

    Originally Posted by chirag999
    Hello,

    I have got my loan amount disbursed from the ICICI bank, when sanctioning the loan amount bank executive told me that i have to take the loan insurance and its mandatory.

    Now after talking to various teams in ICICI bank i came to know that it is not mandatory insurance.

    This insurance covers the EMI's incase of job loss, loan amount coverage incase of any accident etc etc...

    I do not need this insurance and would like to have you opionion regarding the process i should follow to get it reverted.

    The insurance amount is already charged in the first EMI.
    My loan is NRI home loan and wan processed through the bank manager of my local branch.

    1) Do i follow the process through bank manager/executive who processed my loan

    2) instead of option 1 approach the central home loan/lombard insurance team through helpline

    or raise the cases through both option 1 and 2

    also please suggest if you have any knowledge regarding this that may help me...

    1)
    CommentQuote
  • thanks for your reply...i will send the email now itself
    please provide me more inputs when you have time
    CommentQuote
  • My brother had the same situation when he took a loan last year.. And the dealing staff shamelessly lies about it being mandatory until we went to the manager and got the true picture...

    Imagine they initially saying its a loan condition.... Until we read the approval docs

    Anyways, even if you get this insurance reverted (it's an expensive one anyways) it may be worth taking a (much cheaper online) separate term insurance just to cover your loan. Is more flexible and you can terminate it once you payoff the loan.
    CommentQuote
  • yesterday they have sent me the policy pdf, my policy started on 7th may.
    also as per the bank they will refund only 78% of the amount if the policy is cancelled in one year.

    i do not want to pay them 12% for the crap they have done, any further suggestions

    Originally Posted by Magadh_Pride
    My brother had the same situation when he took a loan last year.. And the dealing staff shamelessly lies about it being mandatory until we went to the manager and got the true picture...

    Imagine they initially saying its a loan condition.... Until we read the approval docs

    Anyways, even if you get this insurance reverted (it's an expensive one anyways) it may be worth taking a (much cheaper online) separate term insurance just to cover your loan. Is more flexible and you can terminate it once you payoff the loan.
    CommentQuote
  • thanks for your suggestion....yesterdat i sent emails to lombard, icici bank customer care...also to the executive who processed my loan

    they are saying only 78% will be refunded if i cancel the policy now i.e within first year

    Originally Posted by raj0112
    Pretty much immediately send an email for cancellation of the insurance ploicy. You have a freelook period of 15 days after receiving the policy document. Mention the receipt date as well. I have a whole story to tell how you can get the premium paid back, will try and find out some time to explain that here. Key is to send for caancellation during the free look period for now shoot an email to customer care and cancel the policy.
    CommentQuote
  • Originally Posted by "chirag999
    yesterday they have sent me the policy pdf, my policy started on 7th may.
    also as per the bank they will refund only 78% of the amount if the policy is cancelled in one year.

    i do not want to pay them 12% for the crap they have done, any further suggestions



    What for Is the deduction for? Did you undergo any medical tests which they are deducting the costs for?

    If your policy started May 7, you were still within the 15 day free look period before you decided to cancel it...so the charges would/ should be minimal if any at all
    CommentQuote
  • No charges if cancelled with in Freelook period

    Hi,
    No insurance company can charge you any money other than miniscule admin charges if you cancel with in free look period. Its enforeced by IRDA (or some govt body). I personally got my 98+% money back. ICICI Lomb sux man, its the worst insurance company and is infamous for tricking the customer. I suggest you do below:

    1) Do you have a cancellation confirmation number from their Customer Care?
    2) Call the customer care manager and tell them catagorically that you cancelled with in free look period and need 100% your money back else will take legal route.
    3) It will take few calls - around 8-10 hours of time spanning across 20 odd calls but you will get the money back almost all money.

    I got all my money so you WILL get the money back, make sure you cancelled with in free look period. Read through Free Look period definition etc. I am pretty sure ICICI policy would not state the free look period explicitly. Thats infact is cheating - they should clearly mention it in policy document. Irrespective of that they are liable to pay all money if policy is cancelled with in the period.

    Good Luck! Keep posting here on status or if you need help.

    Originally Posted by chirag999
    thanks for your suggestion....yesterdat i sent emails to lombard, icici bank customer care...also to the executive who processed my loan

    they are saying only 78% will be refunded if i cancel the policy now i.e within first year
    CommentQuote
  • Originally Posted by chirag999
    Hello,

    I have got my loan amount disbursed from the ICICI bank, when sanctioning the loan amount bank executive told me that i have to take the loan insurance and its mandatory.

    Now after talking to various teams in ICICI bank i came to know that it is not mandatory insurance.

    This insurance covers the EMI's incase of job loss, loan amount coverage incase of any accident etc etc...

    I do not need this insurance and would like to have you opionion regarding the process i should follow to get it reverted.

    The insurance amount is already charged in the first EMI.
    My loan is NRI home loan and wan processed through the bank manager of my local branch.

    1) Do i follow the process through bank manager/executive who processed my loan

    2) instead of option 1 approach the central home loan/lombard insurance team through helpline

    or raise the cases through both option 1 and 2

    also please suggest if you have any knowledge regarding this that may help me...

    1)


    I also got my loan from ICICI and at the time of signing papers which are around 50 odd pages, they slip in between insurence papers,and if you keep silent and sign blindly ,you are in fix.This is true you can not read all the pages you are signing,but at least ask what is this paper on which you signing for purpose.Read Headlines of each paper ,what it deals with before signing.When he put up insurence papers in front of me,i was asking for what this paper,then he told it is very useful and started telling me the benifits.I told him in plain Hindi that just shut up and I know benifit,if i need i will call you for this purpose.He simply did not utter a word after that.
    CommentQuote
  • I have taken home loan of 37 lacs from Axis.But they have given me life insurance of premium 69 k ("under Max Life Group Credit Life Secure’, a group term life insurance (hereinafter “Insurance”) offered by Max Life Insurance Co. Ltd. to Axis Bank Ltd. customers").
    Now my EMI has risen by 600/ mth.
    Now i want to ask if i go for cancellation of policy as it is still in free look period.Can i do that.
    What is the process and will it not impact my home loan.
    CommentQuote
  • As you might have gone thru earlier posts it is not at all compulsory to take home loan insurance.Even HDFC does not force it upon their customers other than informing about its benefit.
    However it is always good to cover home loan thru term insurance and there are many products available with annual premium which you can terminate once you have paid a portion of loan.This one time premium product is extortion.
    Please immediately terminate it and raise issue with ombudsman and RBI if the branch does not listen.
    If possible go for some nationalised bank.There is a lot of competition amongst banks for home loan customers and many are offering zero processing fee and low ROI. And staff is helpful and transparent.No requirement of life insurance but they do ask for fire and earthquake cover for structure which costs about 4000/-(one time) for ten years
    I recently transferred 39 lacs loan from HDFC to OBC since HDFC was not offering me lower rates as for new customers.
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  • SBI is also asking to take up insurance while taking lloan. FOr 8 laks loan, hd to pay 16k as insurance premium. Vo bhi loan amt me jod dia khama ka.

    Ye sare hi aisa kar rhe hai.
    CommentQuote
  • i was able to get 100% amount...sent emails to customer care, loan executive and had to call them 5-10 times


    Sent from my iPad using Tapatalk
    CommentQuote
  • Originally Posted by niraj7
    As you might have gone thru earlier posts it is not at all compulsory to take home loan insurance.Even HDFC does not force it upon their customers other than informing about its benefit.
    However it is always good to cover home loan thru term insurance and there are many products available with annual premium which you can terminate once you have paid a portion of loan.This one time premium product is extortion.
    Please immediately terminate it and raise issue with ombudsman and RBI if the branch does not listen.
    If possible go for some nationalised bank.There is a lot of competition amongst banks for home loan customers and many are offering zero processing fee and low ROI. And staff is helpful and transparent.No requirement of life insurance but they do ask for fire and earthquake cover for structure which costs about 4000/-(one time) for ten years
    I recently transferred 39 lacs loan from HDFC to OBC since HDFC was not offering me lower rates as for new customers.


    Even im looking to transfer my loan from hdfc...they have the highest ROI rt now...since u must have reaserched a lot...may i know wat ROI u got from OBC...and is all the process time taking....or a smooth one...will banks exchange papersa mong themselves or we have to provide all docs from scratch...and wats d possibility that banks like obc will not increase rates in future and remain lower ever...
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  • I had applied for home loan from Dewan Housing. They had taken 2810/- from me but hadnt given me the sanction letter. Although they told me just verbally tht loan is sanctioned but refused to give me the sanction letter.
    Please suggest what i can do in this case?
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  • Originally Posted by del_sanju
    SBI is also asking to take up insurance while taking lloan. FOr 8 laks loan, hd to pay 16k as insurance premium. Vo bhi loan amt me jod dia khama ka.

    Ye sare hi aisa kar rhe hai.


    Even, SBI force me also to buy home loan insurance when I opted for home loan tranfer from LIC to SBI. But I completely deny it. Mailed to zonal head etc. They keep my file pending at least for more than 1 and 1/2 month. Finally they disburse it without insurance.
    CommentQuote