SBI Loan Insurance Policy
SBI Loan Insurance Policy offers comprehensive insurance coverage against life’s expectancies. The policy ensures the insured remains financially protected in case of medical emergencies arising due to critical illnesses and accidents, leading to job loss or death. It addresses the primary cause affecting loan repayment and provides relief from debt in case of a mishap.
Under SBI Loan Insurance Policy, the sum insured is offered up to Rs 1 crore with no medical check-up up to the age 55 years. The basic coverage provided under this policy are as follows:
For any of the 13 specified critical illnesses with the insured surviving for a minimum of 28 days, the value of the loan or the insured amount is paid accordingly:
- End-stage renal failure
- Pulmonary Hypertension
- Multiple sclerosis
- Organ transplant
- Bypass surgery and aorta graft
- Heart valve surgery
- Myocardial infarction
- Total blindness
In the event of an accident resulting in death, or disability (total disablement, loss of sight/limb) of the insured preventing a resumption of everyday life, appropriate coverage is provided as per the loan amount or the sum insured.
Loss of Job
In case of the insured's job loss because of accidental disability or dismissal or retrenchment, the insurance company will pay 3 EMIs of the loan.
Inclusions of this Plan
Other than the necessary coverage mentioned above, the following are also included under the SBI Loan Insurance policy:
- Pan-India Coverage- The policy coverage can be availed across India. In other words, the insured can apply for claims or coverage anywhere in India.
- Coverage for Minors- The minimum age of entry is 18 years. However, suppose the loan is taken on a minor's name and requires insurance for repayment. In that case, policy coverage is permitted on the condition that the nominee is appointed by the parent/guardian.
- Critical Illness Surgery- In the event of critical illnesses, surgical costs are covered for organ or bone marrow transplant, bypass, aorta surgery, and heart valve repair.
Exclusions of the Plan
Under SBI Loan Insurance Policy, the following are excluded:
- Calamities arising out of war, rioting, or acts of violence
- Exposure to nuclear or biological radiation
- Adverse effects of alcohol or drug consumption
- Self-inflicted due to suicide attempt or other means
- Congenital abnormalities or ailments
- Hormonal replacement procedure
- HIV/AIDS or other STDs
- Self-medication or therapy not recommended
- Injuries due to airline, sport, mountaineering, military activities
- Any treatment outside India
- Pregnancy or infertility treatment
Features & Benefits of the SBI Loan Insurance Policy
The main features and benefits of SBI Loan Insurance policy:
- For critical illnesses, the waiting period is 90 days.
- Medical test deferred till 55 years of age and/or sum insured of Rs 1 crore.
- Policy tenure lasts from one year to three years, depending on the insured.
- For unclaimed policy, renewability permitted up to 3 years.
- Renewal benefit is offered by a waiver of the waiting period upon policy renewal.
- Following claim acceptance, if the payment is not settled within 7 working days, the insured receives an additional interest of 2% on top of the claim amount.
- Premium payment is subject to tax exemption under Section 80D of the Income Tax Act, 1961
The minimum eligibility conditions to buy this plan include:
|Minimum Entry Age
|Maximum Entry Age
|Number of people covered
||Individual (the person issued the loan)
||Citizens &Permanent resident of India; any adult who has a loan from an RBI-recognized financial institution
Cancellation Terms of the Policy
Cancellation of SBI Loan Insurance Policy occurs in the following conditions:
- A time period of 15 days is provided, known as the free look period. In this duration, if the insured chooses to withdraw from the policy, no loss is suffered. Consequently, the policy is canceled.
- Withholding information affecting policy terms results in immediate termination.
- Applying for a critical illness/accident claim results in the termination of the policy.