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Deepak Kumar Vasudevan ((Confidential))     01 January 2010

Photocopy of Insurance Application Forms

I have been observing that this a habit practiced by most private banks in India quite stealthily that during signing off their loan kits, they also bring together some insurance application form.

In most of the cases, it is just a xerox (photocopy) of the application form. They deny processing services without filling the form.

Are they justified to proceed that way?


 4 Replies

Devajyoti Barman (Advocate)     01 January 2010

The loan kits basically consisits of loan agreement containing innumerable  terms and conditions. So mere photocopies does not make any difference but thr problem is the borrower is forced to sign those documents including loan agreement without going through its contents on the pretext of completing formalities and later has to pay the price if found violating any of its terms though he is not aware of it.

mahendrakumar (marketing)     02 January 2010

eventhough there is no justice or faireness in their action,it is a regular practices now a days because many of those "Banks" are corporate agents for those insurance companies.

Eventhough nobody can force you to sign an insurance contract without your consent,in practice unless you sign those insurance papers, you wont be getting the loan,specially,if you belongs to a small/medium category loan applicants.

the difficult part here is that you cannot prove later that you had signed the insurance application under coersion.

the only remedy seems to be that "there is a cooling of period of 15 days" to deny the product. You may opt this route.

subhash kumar (advocate)     02 January 2010

dear, better you go through the contents of the loan agreement and other documents before signing to save yourself from the clutches of the official of the banks.

subhash kumar, adv

mahendrakumar (marketing)     02 January 2010

i feel '....Going through the documents before signing them.." are some of luxuries of high end customers.

if we make a survey on these,we can find that in majority of these case one has no option to go through all papers before signing them. the officials simply mark an "x" where you have to sign and will be in a hurry to get your signature.

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