Syndicate Bank has announced a tie-up with private insurer Tata AIG Life Insurance for a group insurance cover for its home loan customers.
Customers who opt for this product would get an insurance cover for the home loan liability, with a choice of paying an upfront premium or pricing it along with their home loan EMI.
“With over 1.6 lakh home loan borrowers, we have a huge portfolio, as this product will be made available to existing customers also. However, this insurance product would be optional,” said Mr K. Devananda Upadhyaya, General Manager – Insurance and Marketing, Syndicate Bank.
The bank has also centralised issue of policies, collection of premium and final settlement, he added. Home loan customers between 18 and 55 years of age are eligible for availing this insurance cover.
Speaking at the event, Ms Neetasha Joshi, Senior Vice-President and Business Head – South India, Tata AIG Life Insurance, said that this was a real protection product.
“We are looking at 40,000 to 45,000 policies this year, amounting to Rs 25-30 crore of premium,” she added.
According to her, the product would come with non-medical limits. In the event of prepayment of the home loan, customers have the option to continue the cover for the sum assured, or surrender the policy, which would also ensure refund of the premium paid for the remaining loan period.