India's largest lender, State Bank of India has decided to discontinue its free accident insurance cover given to home loan and auto loan customers from July this year.
State Bank of India, in a notification to its customers said that the complimentary group personal accident insurance cover (death only) for home and auto loan customers will be discontinued on the expiry of current Master policy on July 1, 2013.
"Hence, in case of accidental death of any Home/Car loan borrower on or before July 1, 2013, claims may be lodged for the outstanding amount in the loan account subject to the terms and conditions mentioned in Master Policy," SBI said in notification.
The bank did not mention the reasons for discontinuing the complimentary accident cover. The bank said that the customers can opt for the insurance policies offered by SBI's insurance venture.