Had taken home loan from SBI on 18th Sept-2010 for amount of 199990 (Loan A/C #314-0737-4849). On 30 th May’2013 an amount of Rs 12465 is deducted from my home loan and credited to SBI General insurance without my knowledge, information and authorization.When I contacted branch manager, he was not able to explain why the amount is deducted. After few days I received a policy document from SBI general insurance for an amount of 37 lakhs. Questions is, 1)when the total loan amount is 20 lakh and current outstanding is ~17 lakh why should i pay a premium for 37 lakh insurance. 2) Why was not I told about this while loan was sactioned and charged after 4-yrs of loan disbursal 3)Why I was not even informed about this before deduction(forget about authorization)

Charges of Rs 12465 and mental agony: When I contacted Branch manager he had no clue about this charges and he gave telephone and e-mail id of concerned person. In spite of repeated try I could not reach him(phone rings but no picks up) then tried to reach him through mail (I can produce the proof when required) and response was this is as per loan terms and conditions. When I requested for more detailed and convincing reply there was no response from there side.

1) Reversal of above charges or proper justification of the charges (like why insurance for 37 lakh when total loan outstanding amount is ~17 lakh) 2) Rs 10000 penalty for the mental agony

Complainant Information
name- ranjaniitm