Last Updated on: 03/04/2024
Indian Overseas Bank
FAQs on Loan Secure Policy
Q. What is Loan secure policy and how is it beneficial to me?
Ans. Loan secure policy is an economical way of protecting Customer's family from loan repayment in case the customer dies due to accident or if he is permanently disabled or suffers from a critical illness.
Q. Why should I buy loan secure policy from Indian Overseas Bank?
Ans. If you have availed any loan and you want to protect your loan in case of critical illness or accidental death so that your family doesn't have to bear the burden of EMIs after any such unfortunate event, you must secure your loan through group credit protection policy where you can cover the risk by paying minimal premium.
Q. Which company IOB has tied up for loan secure policy?
Ans. Bank has tied up with Universal Sompo General Insurance Co (Group Credit Protection Policy) and Niva Bupa Health Insurance (Loan Linked Group Critical Care Product) and SBI General Insurance company (Loan Liability Insurance) for this purpose.
Q. What type of loans are covered under Group Credit Protection Policy?
Ans. Retail Loan / MSME Loans / KCC / Micro / Gold loan etc are covered under this policy.
Q. What is the tenure of coverage?
Ans. 1 to 5 Years from the date of policy, the same may be renewed subsequently.
Q. What is the maximum Sum Insured under Group Credit Protection Policy of USGIC?
Ans. There are two plans, Plan A & B. Plan A covers critical illness & accidental death while Plan B covers only accidental death. Cover ranges from Rs. 1 lac to Rs. 5 Crore.
Q. Which type of illnesses are covered under Plan A.
Ans. Plan A further divided into two variants - Variant 1 covers 41 critical illness & Variant 2 covers 9 critical illnesses.
Q. What is the maximum Sum Assured in Plan A?
Ans. Variant 1 (with 41 critical illnesses + accidental death coverage) provide maximum sum insured upto Rs. 3 Crore while Variant 2 (with 9 critical illnesses + accidental death coverage) provide maximum sum insured upto Rs. 10 lac.
Q. What is the maximum Sum Assured in Plan B?
Ans. Plan B provides maximum sum insured upto Rs. 5 crores.
Q. What is the age criteria for availing group credit protection policy?
Ans. Plan A can be availed by loan borrowers age between 18 - 55 years while for plan be age can be between 18-65 years.
Q. Do I need to avail sum insured for total loan amount?
Ans. No, sum insured can be chosen by customer based on their risk appetite, however the same cannot be more than loan sanctioned amount.
Q. What is the initial waiting period?
Ans. 60 days.
Q. Whether the claim is payable only on death due to critical illness?
Ans. No, the insurance company shall pay the outstanding loan amount or sum insured chosen by customer (whichever is lower) if customer is diagnosed with critical illness, and in case of accident policy covers accidental death as well as permanent total disability also.
Q. What is the premium payable if I want to secure my loan with group credit protection policy in IOB?
Ans. There are three plans, you can choose as per your risk appetite:
Q. What is the entry / exit age for Niva Bupa Group critical care policy?
Ans. Entry age between 18 to 55 and policy can be renewed upto age of 75 or remaining period of loan whichever is lower.
Q. What risks are covered in Niva Bupa Group critical care policy?
Ans. The policy covers 41 critical illness, accidental death and permanent total disability as well as temporary total disability due to accident.
Q. I had availed housing loan of Rs. 50 lacs in 2022, can I avail any of the Policy now?
Ans. Yes, the same may be availed anytime during currency of loan. However, cover shall start after initial waiting period of 60 days.
Q. Do I need to avail the insurance for total loan of 50 lac (in above case) or on today's outstanding.
Ans. It can be taken on today's outstanding or even less as per customer's choice.