Vehicle loan

Dear Client,

When a vehicle loan borrower passes away , the primary responsibility for repayment falls to their estate. As the surviving spouse and legal heir, you are generally only liable for the loan up to the value of the assets you inherit from your wife, unless you were a co-borrower or guarantor on the loan. The bank may also have the right to repossess the vehicle, as it served as collateral.

The fact that health history wasn't requested or provided during the loan application is typically not a factor in the validity of the loan itself, though it could affect a related loan protection insurance claim if such a policy was in place. Your best course of action is to immediately inform the bank of your wife's passing, thoroughly review all loan documents for details on co-borrowers, guarantors, or any loan protection insurance, and most importantly, seek legal advice to understand your specific obligations and rights.

Dear Client,
The credit life insurance is typically a insurance that pays off the remaining loan on a car or bike if the borrower passes away during the loan term. It protects the borrower's family financially by ensuring they are not burdened with repaying the vehicle loan. In a contract of insurance, being a special contract based on utmost good faith, the parties to the contract are bound to disclose all material facts within their knowledge. The duty of disclosure is not an implied condition of the contract of insurance, but arises outside and independently of the contract of insurance. Section 45 of the Insurance Act, 1938, primarily deals with the protection of life insurance policyholders. It typically prevents insurers from questioning a policy after three years from its issuance. It restricts the insurer's ability to repudiate a policy based on alleged misstatements or non-disclosures of material facts in the proposal form after this period, unless fraud is involved. So, when a vehicle owner expires of cancer just after a month post sanction of loan or within three years of issue of insurance policy, it undoubtedly proves the concealment or non-disclosure of material facts about the health of the insured person who was suffering from cancer at the time processing of vehicle loan and accordingly, no relief is feasible to the legal heirs of the deceased policy holder and the borrower of the vehicle loan even through litigation.