Public sector Bank - Dena Bank has decided to work with Universal Sompo General Insurance Company. In order to keep a check on the loan misconducts and to provide the loan insurance cover to the borrowers the bank has decided to work with the insurance company.
It has been reported that in case the borrower is unable to pay the loan because of the mishaps, such as major illnesses and medical procedures, accidental death and permanent disablement, loss of job, fire mishap etc the USGIC policy will pay the EMI of the loan of the customer for three months.
Chairman and MD of the bank stated that the policy will help the bank to save on provisions that it would otherwise have to make if the borrowers are unable to service the loans. The main advantage of the policy is that it eliminates the user tension of risks arising from the inability to repay loans due to unavoidable situations.
This loan secure cover is available on education, auto, and home, personal and other loans. The minimum insurance policy period is one year and maximum three years, renewable thereafter.