[Resolved]  Insurance — MIs selling insurance by clubbing it with Loans

Address:

Surat, Gujarat

Sir/Madam,

I will directly come to the point which is about the banks & financial institutions which are selling insurance by clubbing it with loans. They are pressurizing borrowers to take insurance else their loan will not be passed. Moreover, most of the time borrower does not even know that insurance amount has been added to the loan amount. It can be said that it is the ignorance of borrower but the real fact is that most of the banks are having targets for selling insurance. So, some use pursuance tactic, some pressure tactic and some simply cheat the borrowers by taking their sign without informing about the insurance. Further, the premium amount of the insurance ranges from 5-20 % of the loan amount. In many cases when borrowers offers to have a "TERM PLAN" and assign it to the bank for coverage of the liability, they simply refuse and say, " you have to get the insurance from us only". The same is the case with the property insurance.

This way, not only cost of the borrower increases but he does not get the product which is more suitable for him or say he does not get the choice. So, I want to know whether there is any specific remedy to this problem or any case/law/act/provision in this regard then kindly quote the same. Moreover, this practice of selling insurance compulsorily by clubbing it with loan is also anti-competitive as the Lender uses its dominant position to sell third party products and limiting consumers to exercise their choice. So, kindly quote if their is any judgement or case law or provision of COMPETITION COMMISSION OF INDIA in this regard.


Thanks & Regards,
[protected]@gmail.com
surat,