• Mortgage loan death claim

Dear Sir,

My father(Venkat Rao age 56) took a loan of Rs:25,00,000 from Shriram city union in the year 2014. As per loan agreement he has to pay 45,00,000 through repayments until March 2019. But in October 2017 he died due to pancreatic cancer. Till then, he has already paid Rs 34,00,000. 

So, I (Karthik s/o venkata rao) applied for a death claim. Initially, they have assured me that we will get total claim as we have already paid more than half amount. But, now they are saying, as per his age we only get a claim for 4,00,000 and have to pay remaining Rs 7,00,000 to release the mortgaged property.

It seems totally unfair, as we are paying a high rate of interest and have paid more than half of what we took. I believe we could get a full claim in such instances.

Please advise sir.

Karthik, Vijayawada
Asked 6 years ago in Criminal Law
Religion: Hindu

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12 Answers

It is not clear what s the termsin the agreement as reagrds the death of the brorrower pr any insurance is provided pver his life.

So the agreement on this issue is binding on both of you.

If the agreement is not a secured loan then the legal heirs of the deceased is not bound to honour the agreement.

The loan agreement on mortgage of proeprty is generally not so harsh.

So without seeing the agreement further advice can not be given.

Devajyoti Barman
Advocate, Kolkata
22779 Answers
484 Consultations

5.0 on 5.0

1)ask the insurance company to furnish reasons for refusal in writing

2)file complaint before consumer forum and seek orders to direct insurance company to pay your total claim

3) also seek litigation costs and compensation for mental torture undergone by you

Ajay Sethi
Advocate, Mumbai
94523 Answers
7486 Consultations

5.0 on 5.0

1. If he refusal is oral then serve a lawyer's notice to the insurance company to state the reasons behind rejection.

2. Consult a lawyer with a copy of the agreement to ascertain your liability.

3. You will be free to sue the insurance company in consumer forum if it refuses to provide the claim amount sought by you.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

I limit myself in answering your question, as You did not share the agreement.

1. Refer the insurance documents pertaining loan agreement. In case, if you do not get it then apply through RTI and get the same.

2. Get the consultation from any of the lawyer on the forum based on the loan agreement.

Niranjan
Advocate, Bangalore
844 Answers
9 Consultations

4.9 on 5.0

If I am not mistaken, claim is insurance which you refer right? If so, if there is a clause which guarantee assured return, then write to IRDA and ombudsman. If you didn't get satisfactory response, file a consumer complaint alleging unfair trade practice. Understand high interest rate has to be disputed before entering into contract and not after paying 75%.

Rajaganapathy Ganesan
Advocate, Chennai
2132 Answers
8 Consultations

4.9 on 5.0

1. Things are not clear in your query.

2. Your father, since deceased, had taken loan of Rs.25 lakhs by mortgaging his property in the year 2014 but he has expired in the year 2017 before the loan was fully repaid.

3. Your statement " they have assured me that we will get total claim as we have already paid more than half amount" is not understood. What claim have you preferred on them? You can claim from insurance company if his life was insured and had the said policy been assigned to the mortgagee.

4. However, if there was an agreement between your father and the said party that in case of demise after paying 50% of the loan taken, more than half the amount will be adjusted with the said unpaid loan, then approach the Consumer Forum seeking relief and justice.

Krishna Kishore Ganguly
Advocate, Kolkata
27192 Answers
726 Consultations

5.0 on 5.0

hi, it is advisable to file a complaint in the consumer court and also a civil suit for injuction against the illegal and unjust demand of the union

Hemant Chaudhary
Advocate, Gurgaon
4630 Answers
67 Consultations

4.9 on 5.0

This loan account will be settled in terms of the stipulations/provisions contained in the loan agreement.

If there's stipulation in the said agreement as regards to death claim, providing therein that in case the debtor dies after paying 50% of the loan taken, more than half the amount will be adjusted with the said unpaid loan, then your demand for total claim is justified.

Send a legal notice seeking forthwith closure of loan account by settling off the total claim. If there demand persists despite the legal notice, approach the consumer court.

Vibhanshu Srivastava
Advocate, Lucknow
9588 Answers
303 Consultations

5.0 on 5.0

File consumer Case,

Show policy for precise advise.

Yogendra Singh Rajawat
Advocate, Jaipur
22596 Answers
31 Consultations

4.4 on 5.0

What is the basis of your claim for exemption.

Is it due to the insurance police on the loan amount?

If so, you may read the conditions of insurance in the event of death of the po0licy holder.

Ask the insurer to give the same i.e., refusal or partial refusal in writing.

you can approach consumer forum if you feel that the insurance company is doing injustice to you by not paying the insurance police death claim.

First issue a lawyer's notice demanding the relief, let them give in writing a reply to this and after that you can approach consumer forum for relief and remedy.

T Kalaiselvan
Advocate, Vellore
84724 Answers
2172 Consultations

5.0 on 5.0

Hi

1) Since your father had already subscribed to the Insurance facility at the time of availing loan facility from Shriram City Union, the insurance company is duty bound to pay the remainder monies at the time of demise of your father.

2) Also at the time of death of your father whatsoever is the principal amount is pending is only to be paid as Insurance claim will kick in immediately upon the demise of your father and hence interest computation should automatically be stopped by shriram city union.

3) It is incorrect on part of both shriram city union and the insurance company to deny you your full benefits arising out of the claim.

4) Issue legal notices to the insurance company and shriram city union finance.

5) Also obtain an injunction from civil court refraining shriram city union finance from disposing the property without following the due process of law.

Hope this information is useful.

Rajgopalan Sripathi
Advocate, Hyderabad
2173 Answers
394 Consultations

5.0 on 5.0

Hello,

If they are imposing conditions which are outside the terms of the agreement then you can definitely file a case to get the entire claim.

regards

Anilesh Tewari
Advocate, New Delhi
18077 Answers
377 Consultations

5.0 on 5.0

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