PIYUSH SHASTRI (A lawyer in the making...) 10 September 2012

Insurance co. dening death claim..

hello ,

my cousin has taken education loan for persuing mba from sbi.......and as per requirement the bank told us to get a life insurance cover of the educational loan taken.......we have given standing instructions to bank to to deduct the premium of life insurance policy from our savings account.....insurance co. received three installments from our account and after that they didnt intimate us abt the non payment of premium.....in the mean time during hi s last semister he met wid an accident and died..........nw the sbi has sent notice for the recovery of the educational loan ....and the sbi life insurance denied our claim that the policy has been lapsed due to non payment of the installments....pls advice wht to do????

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Kumar Doab (FIN) 10 September 2012

Such payment is by ECS mode.Usually insurance company obtain email id in proposal form and a reminder for payment by email,SMS is also sent.

Did any ECS bounce due to insufficient balance in account.

Before declaring the policy having lapsed company should have provided service to keep policy in force.

In case of non payment usually company approaches the customer.

The onus of payment is on customer.

You may approach a competent and experienced lawyer having expertise in consumer and insurance matters.

The grievance redressal mechanism thru IRDA is given in handbook.

Attached File : 745686989 regulation of protection of policy holders interest 3221 gi 2002 eng.pdf, 745686989 life insurance handbook.pdf downloaded: 150 times