‘Group Mortgage Redemption Assurance Scheme’, is a Group Insurance Scheme for the borrowers of Housing/Vehicle Loans from Financial Institutions where Loan is recovered under EMI. Under the Scheme, the premium is payable in a single installment covering a decreasing life cover. Insurance cover every year will be almost equal to the loan outstanding at the anniversary date of each borrower.
Under the scheme, the premium depends
- Age (nearer Birthday) at entry of
the member into the Scheme.
- Outstanding loan amount at entry
- Term of loan.
- Schedule of repayment.
- Rate of interest with which the loan
Any borrower may become member of this scheme . The minimum term of assurance is 3 years. Existing Borrowers can join the scheme with certain conditions within 6 months of the commencement of scheme.
In case of death of the member during the coverage period ,life cover on the anniversary date preceding the date of death is payable .The claim proceeds are used to square off the outstanding loan.