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SBI to discontinue free accident cover for home & car loan customers from July

State Bank of India (SBI), the country’s largest bank 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, 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 1 July 2013.

‘Hence, in case of accidental death of any Home/Car loan borrower on or before 1 July 2013, claims may be lodged for the outstanding amount in the loan account subject to the terms and conditions mentioned in Master Policy,’ State Bank of India said.

The bank, however, did not mention the reasons for scrapping the complimentary cover. State Bank of India said that its home and car loan borrowers, who do not have any insurance cover for their loan liabilities, may opt for the policies being offered by SBI’s insurance venture. Currently, SBI General Insurance Company Ltd offers an Accident Insurance cover of Rs 4 lakh for State Bank of India’s savings bank account holders for an annual premium of Rs 100.
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