State Bank of India (SBI) to discontinue free accident cover for loan customers.
The country’s largest bank State Bank of India (SBI) will discontinue a free accident insurance cover given to its home and car loan customers from July this year.
In a notification to its customers, the State Bank of India said the complimentary group personal accident insurance cover (death only) for home and car loan customers will be discontinued on the expiry of current Master Policy on July 1, 2013.
“Hence, in case of accidental death of any Home/Car loan borrower on or before July 1, 2013, claims may be lodged for the outstanding amount in the loan account subject to the terms and conditions mentioned in Master Policy,” SBI said.
The bank, however, did not mention the reasons for scrapping the complimentary cover.