Finance Minister announces Housing Loan Insurance.

By Abhay Shah, Realty Quarter

The Insurance Regulatory and Development Authority of India (IRDAI) have notified the Lok Sabha on Monday, that the public sector insurer LIC of India and a few of the private sector insurers have launched housing loans insurance.

Union Minister of Finance and Corporate Affairs Nirmala Sitharaman, replied in writing to the question, “Insurers can charge single or regular premiums and issue policies to banks that wish to cover the risk of death to the life of borrowers who might have received housing loans.”

The IRDA Regulation 35 (n) Non-linked insurance products, 2013 protects the interests of home loan customers who are members of group credit life plans by providing for the continuation of the coverage up to the end of the coverage period or opting to abandon or cancel the policy by returning a certain proportion of the premium on a pro-rata basis.