My cousin who expired had taken a loan of Rs. 10.00 lakhs. The loan was insured and the balance amount of Rs. 8.50 lakhs was claimed from the insurer instantly after death. The insurer delayed payment by about a year and made a payment of Rs. 8.50 lakhs only. In the meantime the Bank continued to charge interest on the total loan amount along with penalty charges. This amount is now being claimed from the wife of my cousin. What does the rule of insurance provide.
