Insurance claiming for mortgage in case of death
Sir, I'am Suriti Hariteja ,age 24, My mother (Suriti Sarala) took a mortgage loan of Rs.35,00,000/-(Thirty five lakhs loan) from Shri Ram City union Finance on dt.26.07.2014. (4 commercial shops)has been mortgaged to this finance.
The whole mortgaged agreement is in between the names of my mother (Suriti Sarala) and Shri Ram City union Finance.
At the time of agreement they took my (Suriti Hariteja) individual 60 cheques (as the loan is of 60 EMI and Rs.1,06,458/- for each installment), as at that time my mothers cheques were not available so i gave my cheques for them.
So my mother (Suriti Sarala) paid 4 full installments as on dt.19.05.2016.
My mother(Suriti Sarala) was EXPIRED on 11.12.2014.She committed suicide,due to disputes between me and my sisters husband(Kishor) , he registered a false criminal case 302 IPC on me (Suriti Hariteja) stating that my mother comitted suicide because of me, His (Kishor) intention was to grab the entire property after sending me behind the bars.
However case was aqquital and dismissed in the court.
Now the problem is , this Shri Ram Cit Union Finance sent me the notice stating that I have to clear and pay the loan amount as I am the co-borrower with in 1 week .
I(Suriti Hariteja) asked them (Shri Ram Cit Union Finance) to claim for insurance, but they are saying that insurance will not cover for suicidal death, and moreover You are the accused in that case so we will not cover the insurance.
But I (Suriti Hariteja) argued with he finance that case on me is not proved. So I have a right to claim the insurance.
Moreover this finance have done insurance in their own company. So they started bluffing me that there will be no chance of getting insurance.
Now (Shri Ram Cit Union Finance) sent me the legal notice stating that I have to pay the total loan amount of Rs.64,68,873/-. failing which they will sent against me the ARBITRATION PROCEEDINGS to pay the total money.
SIR please help me in this issue. THANKING YOU.
Asked 8 years ago in Business Law
Are you talking about insurance for the mortgage loan?
Sir, I'am talking about insurance for the mortgage loan...!
Need to see the policy document of your insurance cover?!
Sir, As I said , My mother committed suicide all the documents in home are burnt . As of now I don't have any documents regarding this loan.
if you have not signed as a co-borrower or a guarantor in the loan agreement but only given cheques then the cheques cannot be presented and you cannot be liable for the loan?!! Whether you are a co-borrower?
I did not signed as a co borrower , but I gave them my signed id proofs like aadhar card , FIR copy , pan card , Driving licence along with the hand written letter stating that i have applied for insurance claiming recently. I gave them 4 months back. (I gave them my proofs because I was told that they will apply for insurance with these documents. Now they are saying that no insurance will be claimed for suicide death/death with in one year from loan taken , moreover insurance is done for only 15 lakhs not for the whole loan amount taken that is thirty five lakhs. )
Actually Mortgaged Agreement is done in between my mother (SURITI SARALA) and Shri Ram City union Finance.
Now I suspect that the documents of my signed id proofs which i gave them for insurance claim -- with that they included me as a co-borrower.
And every month till today , I am getting a cheque bounce messege from the bank , as I gave them my cheques .
(At the time of agreement they took my (Suriti Hariteja) individual 60 cheques as the loan is of 60 EMI and Rs.1,06,458/- for each installment), as at that time my mothers cheques were not available so i gave my cheques for them.)
On whose name is the property lying now?
Now property is in my name (Suriti HariTeja)--- as me and my sister partitioned the properties.
Whether you stood as guarantor?
No I'am not the Guarantor. Guarantor is (Mr. Basanth ) he is my neighbour. He is also getting worried about this issue as he also got a notice form (Shri Ram Cit Union Finance) stating that he stood as guarantor and he is also liable to pay the loan.
Daily this guarantor will also come to my home and questions me regarding this issue.!!! I'am not able to answer him.
What is the insurance about in the event of a mortgage loan?
Insurance is about If the borrower die in between the span of loan tenure, then the whole loan will be paid by the insurance company.
How do you claim insurance on your own life when you are alive?
Sir, I'am not claiming my insurance . I'am claiming my mothers insurance as she is no more and her loan is still exists.
Why did the finance company accept your post dated cheque?
Sir, I don't know but as I said At the time of agreement they took my (Suriti Hariteja) individual 60 cheques (as the loan is of 60 EMI and Rs.1,06,458/- for each installment), as at that time my mothers cheques were not available so i gave my cheques for them.
If the company has issued a legal demand notice, what and how are they fixing the liability on yourname?
They are fixing the liability on my name as I 'am her legal heir and also the co-borrower (to my knowledge I never kept any signs during agreement as a co-borrower).
Whether you have given a reply notice to them absolving your liability to the loan amount?
I did not gave them a reply notice absolving my liability to the loan amount ... but I have applied for the insurance claim as they came to my home and asked me to pay the loan . On that day I gave all my signed Id proofs for claiming the insurance.
Asked 8 years ago