The New India Assurance Company Limited and State Bank of India have inked an agreement to cover all loanees of SBI availing Housing and Car loans against deaths due to accident. It is an insurance Scheme for which the premium is entirely borne by State Bank of India without passing the burden on to the loanees.

Housing and Car loans outstanding and disbursed from Branches of SBI all over the country come under the scope of the agreement w.e.f. 1st July 2003.

If the loanee happens to die due to accident, the entire outstanding loan with interest as on date of death will be paid by New India Assurance to the Bank and the account squared off.

The MoU was signed by Mr. A. V. Purushothaman, Director and General Manager of New India Assurance and Mr .T. S. Bhattacharya, Chief General Manager of State Bank of India today.