My husband and I are both teachers. We bought a flat in Nagpur in March 2014 with a loan of ₹16 lakhs from DHFL. The loan agreement was between my husband and the bank, and the property is in his name. However, the EMI deductions were from my account as a co-applicant. Sadly, my husband passed away in May 2016. I contacted DHFL for insurance details and learned they had insured me through DHFL Pramerica, paying a premium of ₹76,000. Is it legal for the bank to have insured me, the co-applicant, instead of the borrower? I need legal guidance on this matter.
Best Answer
Under Indian law, it is not mandatory for a bank to insure the co-applicant. While it is unusual for the bank to insure the co-applicant instead of the borrower, this does not necessarily make it illegal. You should consult with a lawyer to understand your specific legal rights and options concerning the insurance policy and the loan.
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