SBI Life Insurance outstanding home loan
The forum said that not conducting medical examination before issuing the policy and then rejecting the claim in the name of examination is unfair business practice. N Lavanya, in her complaint, said that her husband was forced to take SBI Life Loan Protection for a home loan of Rs 50 lakh from SBI (Sindhi Colony), which has now been merged with SBI (SP Road).
Hyderabad: A district consumer forum has directed SBI Life Insurance to pay the outstanding home loan of around Rs 30 lakh of a deceased policy holder and pay compensation of Rs 1 lakh to his wife after rejecting the claim on the grounds of concealment of material facts. Have given instructions. gave instructions. Is.
The forum said that not conducting medical examination before issuing the policy and then rejecting the claim in the name of examination is unfair business practice.
N Lavanya, in her complaint, said that her husband was forced to take SBI Life Loan Protection for a home loan of Rs 50 lakh from SBI (Sindhi Colony), which has now been merged with SBI (SP Road). Lavanya, who is also a co-applicant, said that when they got the loan both of them had never filled any application for insurance and were not even aware of the conditions.
SBI Home Loans
After her husband’s death, her death claim was rejected on the grounds of concealment of material facts. He argued that since the incomplete application forms were signed by the bank officials, the question of concealment of material facts did not arise.
SBI said that they had not forced the complainant’s husband to take the insurance policy and had nothing to do with the rejection of the claim.
However, the insurance company said that the declaration of good health is the sole basis for deciding eligibility for the insurance cover. He said that if the policyholder had declared that he was suffering from uncontrolled diabetes and fatty liver – which were detected during his checkup – they would not have given him insurance cover. He claimed that the question of signing on blank paper does not arise as it is an electronic application.