T.S. Vijayan (left), chairman of LIC, with P.L. Gairola, CMD of Dena Bank, in Mumbai on Wednesday. (Fotocorp)

Mumbai, Jan. 3: Dena Bank has joined hands with Life Insurance Corporation of India (LIC) to launch a group mortgage redemption assurance scheme for housing loan borrowers.

Under the scheme, home loan borrowers will receive insurance cover. Christened Dena Grihaswami Suraksha Yojana, the scheme is applicable to all housing loan borrowers, including staff housing loan borrowers of Dena Bank, in the age group of 18-60.

However, the insurance cover is limited to outstanding loan subject to a maximum of Rs 1 crore. According to the bank, applicants have to pay a single premium for the entire loan term (ranging from three years to 20 years) at the time of one’s entry into the scheme. If the member dies during the term of cover, outstanding loan is set off against the policy proceeds settled by LIC. If the amount of death claim exceeds the outstanding loan, the excess is paid to the nominee of the member.

T.S. Vijayan, chairman of LIC, said, “The tieup with Dena Bank was in line with LIC’s continued focus on bancassurance. LIC, in addition to many other leading banks, has opened a vista of this product for the housing loan borrowers of Dena Bank today, thereby giving an opportunity to cover the outstanding housing loan at a very low premium. LIC has been taking steps to reach out to people through individual insurance and group products such as this scheme.”

P.L. Gairola, chairman and managing director of Dena Bank, said with the retail revolution cutting across the country and huge demand being witnessed for various financial products and services from the customers, the bank’s objective was to cater to such demands with hassle-free, convenient products.