Loan Insurance

You spend your lifetime in dreaming about a home of your own. You take the help of financial institutions to fulfill your dream. Along with the pleasure of fulfilling your dream come the liability and the responsibility of paying for the same over the next few years coupled with fear of default.

At SBI General we make things easy for you by providing a unique policy – Loan Insurance Policy, packaged to meet the primary causes. SBI General’s Loan Insurance Policy puts you in control, relieves you of the stress and helps you truly enjoy the home you have just acquired.

Key Feature

  • No medical check-up up to Sum Insured of Rs.1 Crore and/or age up to 55 years
  • Policy can be availed for maximum of three years benefitting the purse strings
  • Coverage for 13 critical illnesses, accidental death or permanent disablement and loss of job
  • Sum Insured available on fixed or reducing basis


SBI General’s Loan Insurance Policy offers the following covers -
• Critical Illness  • Personal Accident  • Loss of employment

Section I - Critical Illness
Policy provides coverage against 13 critical illnesses listed below. Immediately on diagnosis of any one of them, benefit amount is paid subject to policy terms and conditions.

  • Cancer
  • Kidney Failure (End Stage Renal Failure)
  • Primary Pulmonary Arterial Hypertension
  • Multiple Sclerosis
  • Major Organ Transplant
  • Coronary Artery Bypass Graft
  • Aorta Graft Surgery
  • Heart Valve Surgery
  • Stroke
  • Myocardial Infarction (First Heart Attack)
  • Coma
  • Total blindness
  • Paralysis

Section II - Personal Accident

Policy pays for

  • Accidental Death or
  • Permanent Total Disability
 Permanent Total Disablement% of compensation
 Loss of sight in both eyes 100%
 Actual loss by Physical Separation of both hands or both feet or one entire hand and one entire foot 100%
 Loss of use of both hands or both feet or of one hand and one foot without Physical Separation 100%

Section III - Loss of Job

Maximum of 3 EMI will be payable in the unfortunate event of temporary unemployment or dismissal or retrenchment

Age eligibility:
 The minimum age of entry for the SBI General’s Loan Insurance Policy is 18 years and
maximum age of entry is 60 years

 SBI General’s Loan Insurance Policy is available for a maximum period of three years.

Extent of compensation under Loan insurance Policy:

If any of the contingencies occurs during the policy period, compensation will be provided as given below -
Death: Outstanding Loan Amount or Sum Insured respectively for reducing SI basis and Fixed Sum Insured
Accidental Permanent & Total Disability: Outstanding Loan Amount or Sum Insured respectively for reducing SI basis & Fixed Sum Insured
Critical Illness: Outstanding Loan Amount or Sum Insured respectively for reducing Sum Insured basis and Fixed Sum Insured
Loss of Job:Maximum 3 EMIs

General Exclusions

  • War, invasion; acts of terrorism, riot, strike , malicious damage
  • or such similar perils
  • Nuclear perils; ionising radiations
  • Drug abuse or alcoholism
  • Self inflicted injury, attempted suicide or suicide
  • Consequential loss or indirect expenses

Specific Exclusions

Section I- Critical Illness

  • Any pre-existing illness
  • Any critical illness discovered within 90 days of the policy
  • Self medication; treatment not administered by a doctor or which is not medically necessary
  • Congenital illness or defects and/or treatment administered for them
  • Hormone Replacement Therapy; contraceptive procedures
  • Gender change or cosmetic surgery or treatment/procedures associated with the same
  • Self medication; unauthorized treatment

Section II-Personal Accident

  • Payment under more than one category specified i.e Death or Permanent Total Displacement
  • Any infirmity/conditions existing before the inception of the policy
  • Persons learning to operate an aircraft or operating as crew or participating in adventure sports including winter sports, hazardous activities and the like
  • Death or permanent total disability arising out of illness
  • Venereal diseases or insanity

Section III-Loss of Job

  • Termination, dismissal, temporary suspension or retrenchment due to fraud or dishonesty, poor performance
  • Businessmen; persons who are self employed
  • Employees on casual, temporary or contractual basis
  • Unemployment due to resignation, retirement whether voluntary or otherwise
  • Unemployment at inception or arising within first 90 days of Inception


  • Are pre- existing diseases covered in this policy?

    Pre existing diseases are permanently excluded from coverage in this policy.

  • Is a Free- Look option available in this policy?

    Yes, free look option is available in this policy.

  • Do I need to undergo Pre-Acceptance Health Check Up compulsorily?

    Pre-acceptance Health check is not mandatory for people who are less than 55 years old and without any history of illness. Insured’s with following condition, acceptance of proposal is subject to a satisfactory medical examination as per SBI General’s requirements:

    • Insured with adverse medical history as declared in Proposal Form or
    • Insured aged above 55 years & irrespective of SI.

    The cost of Pre-acceptance medical tests has to be borne by the proposer. However, if the proposal is accepted by Us, we will reimburse 50% of the cost incurred towards the medical tests so undertaken at our advice.

  • How is the premium calculated under this policy?

    The rate of premium shall depend upon the Loan Tenure, Period of Insurance & Age of the insured

  • What are plan options available in this policy?

    You can buy plans which pay Fixed Sum insured basis or Reducing Sum Insured basis. Also you have an option to choose between 1/2/3 years policy term.