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ICICI Bank - Home Loan Insurance

Last updated: March 10 2014
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  • ICICI Bank - Home Loan Insurance

    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)
  • #2

    #2

    Re : ICICI Bank - Home Loan Insurance

    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 View Post
    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)

    Comment

    • #3

      #3

      Re : ICICI Bank - Home Loan Insurance

      thanks for your reply...i will send the email now itself
      please provide me more inputs when you have time

      Comment

      • #4

        #4

        Re : ICICI Bank - Home Loan Insurance

        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.

        Comment

        • #5

          #5

          Re : ICICI Bank - Home Loan Insurance

          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 View Post
          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.

          Comment

          • #6

            #6

            Re : ICICI Bank - Home Loan Insurance

            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 View Post
            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.

            Comment

            • #7

              #7

              Re : ICICI Bank - Home Loan Insurance

              Originally posted by chirag999 View Post
              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

              Comment

              • #8

                #8

                Re : ICICI Bank - Home Loan Insurance

                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 View Post
                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

                Comment

                • #9

                  #9

                  Re : ICICI Bank - Home Loan Insurance

                  Originally posted by chirag999 View Post
                  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.

                  Comment

                  • #10

                    #10

                    Re : ICICI Bank - Home Loan Insurance

                    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.

                    Comment

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