Apni Law Staff asked 2 months ago
I took a loan from ICICI Bank and they convinced me to buy a 4-year loan insurance, saying it was mandatory. Since I planned to repay the loan early, I asked the bank representative if I’d get a refund when I closed the loan. He assured me I would. After closing the loan, I tried to cancel the insurance but was told I couldn’t because it had to be cancelled within the first month. But the loan couldn’t be closed for six months, making cancellation impossible. The representative wouldn’t answer how I could cancel the insurance. When I asked if loan insurance is required, he said “no.” This clearly shows they miss-sold me the insurance, so I’m demanding a full refund.
Best Answer
Apni Law Staff answered 2 months ago
The bank’s actions regarding the loan insurance could be considered misselling, as they falsely claimed it was mandatory and misled you about the refund policy. Under Indian law, you can file a complaint with the bank’s grievance redressal officer and escalate it to the Banking Ombudsman if no resolution is reached.
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