India's biggest bank announced that it will cease giving the complimentary group accident insurance cover to its home and car loan customers once the current Master Policy expires on 1 July 2013.
"Hence, in case of accidental death of any Home/Car loan borrower on or before July 1, 2013, claims may be lodged for the outstanding amount in the loan account subject to the terms and conditions mentioned in Master Policy," SBI said.
The bank did not give any reasons for discontinuing the free accident cover to its customers.
The bank's home and car loan customers, who do not have any insurance cover for their loan liabilities, can now go for other insurance policies offered by SBI's insurance arm, the SBI General Insurance Company Limited.
SBI General Insurance Company Limited, which is a joint venture between SBI and Australia's insurance provider Insurance Australia Group (IAG) is giving an accident cover of Rs 4 lakh for an annual premium of Rs 100 to the bank's savings bank account holders.