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?
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  • 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!
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  • Originally Posted by 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!


    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
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  • Originally Posted by 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?


    Originally Posted by 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!

    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.
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  • Originally Posted by 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.


    So is your property covered against natural calamities? And if so, what is the coverage amount?
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  • Originally Posted by stinaikar
    So is your property covered against natural calamities? And if so, what is the coverage amount?

    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.
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  • 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.
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  • Originally Posted by 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.

    .


    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.
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  • This is what different people told me about Property insurance that SBI mandates for disbursement of loan
    1. It needs to be on apartment cost for full duration of Loan
    2. It needs to be on loan amount only for full duration of Loan
    3. It needs to be on apartment cost but minimum 10 years duration is enough.
    4. it needs to be on construction cost only for full duration of the loan and sbi valuation officer can decide the cost. Is there anyone who can clarify what is the exact requirement by SBI?

    One more question
    Can it be cancelled later (after say 5 years) if you wish to
    1. sell the apartment or
    2. you close the loan early or
    3. for no reason

    Appreciate your inputs.
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  • is this insurance for loan (in case someone faces finnacial crisis in repaying emi etc) or it is for home/building after possession or during construction?
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