Insurance Regulatry and Deveopment Athourity (IRDA) on Monday made it clear that under lender-borrower scheme life insurance companies will make payment of outstanding loan to lenders in case of eventuality to an individual covered under the group insurance scheme.
The guidelines, which will come in to effect from January 1, 2015, will be applicable in respect of only Group life Insurance Policies obtained under lender-Borrower schemes by banks, NBFCs, and housing finance companies, Irda said. This is for insurance cover taken against housing loans, personal loans etc.
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