HYDERABAD: A district consumer forum here has directed the State Bank of India (SBI) and SBI Life Insurance to release the original title deed and pay Rs 1.2 lakh to a complainant for unilaterally cancelling the insurance policy of her husband on the home loan and for forcing them to clear the pending loan amount after his death.
J Sujatha, the complainant, submitted that her husband, Chinna Venkata Ramana, obtained a housing loan for Rs 8.38 lakh on August 4, 2011, from SBI (earlier SBH), Dabeerpura branch along with the loan risk insurance coverage (Suraksha Loan). Sujatha claimed that her husband paid EMIs regularly until he fell ill and passed away on September 12, 2018.
After the death of her husband, Sujatha said that she approached the bank with the death certificate of her husband and requested the officials to waive off the outstanding balance under the risk coverage and release the property documents.
After receiving no satisfactory response, she even filed an RTI with the bank to get more details.
Sujatha alleged that the bank failed to intimate the complainant about the cancellation of the insurance policy and that Rs 8,958 was deducted towards the Suraksha Insurance for the first year. Claiming that despite having Suraksha coverage, the bank representatives have been visiting regularly and harassing her and her children, she filed the complaint seeking relief.
SBI submitted that the complainant’s husband was aware of the denial of insurance policy and added that he was a wilful defaulter. SBI Life Insurance, meanwhile, said that there is no relationship between them and the complainant.
During the trial, the bench noticed that an outstanding amount of Rs 13, 653 was shown against the Suraksha Insurance loan in the Demand Notice dated June 8, 2017, issued to the complainant’s husband.
“Demanding outstanding dues against the Suraksha Loan in the Demand Notice dated June 8, 2017, clearly shows acceptance of the policy by the insurer in this case,” said the bench, and added that the complainant is entitled to invoke the insurance policy after the death of her husband.
Source: The Times of India
04-01-2021
