Bank cheating us

[User_deacd7d7]

U

User_deacd7d7
PARTICIPANT
March 1, 2025 at 6:11 am

Brother passed away early this year
He was doing mba in us so we took a loan for it.
On top of it we submitted an insurance for loan.
Since he is no more, the bank have refunded the insurance anount and now asking us to pay the loan amount spent
What can be done about this?

Edit : insurance company is cheating us
Bank manager told not to worry
But dad said since they have refunded the money nothing can be done now

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[Cleversagar6489]

C

Cleversagar6489
PARTICIPANT
March 1, 2025 at 6:14 am

Consult a lawyer? But what back did doesn’t sounds right

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[Braveseeker242]

B

Braveseeker242
PARTICIPANT
March 1, 2025 at 6:22 am

I don’t think bank can force you to pay.

Banks already safeguard against this situations by forcing customers to take insurance.

Give written complaint to bank manager and take acknowledgement. Write to RBI ombudsman after 30 days along with DPG portal

also post in r/personalfinanceIndia maybe you will get more responses

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[Wiseguru1881]

W

Wiseguru1881
PARTICIPANT
March 1, 2025 at 6:33 am

What’s the reason the insurance policy was not issued?

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[User_deacd7d7]

U

User_deacd7d7
OP
March 1, 2025 at 7:31 am

They said they tried to contact us with a notice but could not reach us.
No one got a call or anything
No mail no email

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[User_28f37e6f]

U

User_28f37e6f
PARTICIPANT
March 1, 2025 at 9:57 am

Ask for the mail copy.
After 30 days, loop in IRDAI.

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[Snehapanda625]

S

Snehapanda625
PARTICIPANT
March 1, 2025 at 6:36 am

Sorry to hear about your brother, may God give your family strength to deal with this

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[Wiseguru1881]

W

Wiseguru1881
PARTICIPANT
March 1, 2025 at 7:56 am

Is the loan backed by security? collateral backed?

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[User_deacd7d7]

U

User_deacd7d7
OP
March 1, 2025 at 2:04 pm

House was collateral

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[Wiseguru1881]

W

Wiseguru1881
PARTICIPANT
March 1, 2025 at 6:08 pm

the bank will come behind the collateral, If you have a copy of the loan application and the bank has sold you insurance.. then you can make bank a party in the case.. this case will be dragged for few years.. please check for cases where bank had automatically sold insurance from their partners during loan.. keep those cases as ref and you file a case against bank and insurance company. hope you guys succeed

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[User_99538a7e]

U

User_99538a7e
PARTICIPANT
March 3, 2025 at 2:44 am

Bank can go after collateral in this case without going to court . Since the principal is deceased it is better to go for settlement. You can approach the bank branch or higher office for settlement .

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[Fierceanirudh9723]

F

Fierceanirudh9723
PARTICIPANT
March 1, 2025 at 9:28 am

Sorry to hear about your brother. Unless your family co-signed the loan or become a guarantor there is no way the bank can come after them. The bank can try to recover loan from the assets of your brother only.

If there was an insurance on the loan then get in touch with the insurance company for the policy details and file a claim immediately.

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[User_5a7c3d9c]

U

User_5a7c3d9c
PARTICIPANT
March 1, 2025 at 9:36 am

How will bank refund the insurance amount? Not a legal advice: The insurance will be refunded if you cancel the it. If you didn’t cancel it and still the insurance is refunded then you can take action regarding that. The reason for loan insurance is for this type situations. You can talk with the head office of that bank, if it is still not getting resolved you can complain to [cms.rbi.org.in](https://cms.rbi.org.in/) or take legal action on the bank.

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