[veyron_head]

I have a homeloan approved by the bank and they wouldn't disburse it if I don't take their loan protection/insurance. As far as I know, home loan insurance is not mandatory in India. Who should I complain to about this? RBI ombudsman or IRDAI? Please help

[115]

Originally Posted by veyron_head

I have a homeloan approved by the bank and they wouldn't disburse it if I don't take their loan protection/insurance. As far as I know, home loan insurance is not mandatory in India. Who should I complain to about this? RBI ombudsman or IRDAI? Please help

Per my knowledge loan insurance is not mandatory. Please ask them to send a mail to you on these conditions. I know someone who was told that home loan interest will be bit higher if insurance was not taken which did not materialize during disbursement.

[mpksuhas]

Originally Posted by veyron_head

As far as I know, home loan insurance is not mandatory in India.

Not mandatory, its the usual arm twisting tactics. Tell that its not required.

[sunilch]

Originally Posted by veyron_head

I have a homeloan approved by the bank and they wouldn't disburse it if I don't take their loan protection/insurance. As far as I know, home loan insurance is not mandatory in India. Who should I complain to about this? RBI ombudsman or IRDAI? Please help

No need to actually complain. Simply refuse the insurance part (if you don't want it) and if they keep on insisting, tell them you will put a complaint to RBI Ombudsman. They will stop it.

For one case, a simple refusal over phone did it for me. In another case, they were very forceful and after a few calls (of refusal), I sent the RM an email stating "I don't want the loan at all. Kindly close my application." This did the trick and they completed the disbursement next day.

[dass]

Originally Posted by veyron_head

I have a homeloan approved by the bank and they wouldn't disburse it if I don't take their loan protection/insurance. As far as I know, home loan insurance is not mandatory in India. Who should I complain to about this? RBI ombudsman or IRDAI? Please help

Which Bank is this? When I took one from HDFC few years back, they asked me to take this insurance. When I told them I don't need it, they asked if I had a term plan or a life insurance that can cover the outstanding loan amount. I had both, so they just made a note that I have an existing term plan and that did it.