Press Information Bureau
Government of India
Ministry of Finance
01 JUL 2019 5:31PM by PIB Delhi
Insurance for Housing Loans

The Insurance Regulatory and Development Authority of India (IRDAI) has informed that the public sector Insurer, namely, LIC of India, and a few of the private sector Insurers have launched housing loans insurance. Insurers can charge single or regular premiums and issue policies to Banks desirous of covering the risk of death on the lives of borrowers, who may have availed housing loans.

            Regulation 35 (n) of IRDA (Non-linked insurance products) Regulations, 2013, protects the interests of housing loan customers who are members of group credit Life Schemes by providing for: -

a) To continue the cover till the end of the coverage period (or)

b) Opt for surrender Value (or)

c) Cancel the policy with a return of certain percentage of premium on pro-rata basis.

This was stated by Smt. Nirmala Sitharaman, Union Minister of Finance & Corporate Affairs in a written reply to a question in Lok Sabha today.