Insurance premium cuttings

[malikhaseeb37]

I have got my Wagon R financed from Habib bank in 2020, Bank has given me EFU insurance at 3.25% which was around 55,575/-pkr.
I cleared my principle on 26th of June with a penalty of 5.8%.
Ask for insurance premium return. Consumer Dept. said it can take upto 2,3 months.
The day i applied insurance company call me for tracker removal and they removed it the same day.
Today(14-10-2020) after a couple of months. At the response of my own enquiry. consumer dept. ask me to visit them to collect a cheque of 24,336/-pkr instead of 55,575/-.

Is there anyone who can guide me that where does my 30K go?
i never claimed the insurance for my vehicle. monthly insurance was being deducted in 4 instalments i paid to the bank?

Note: i cleared my car very early because of the miscommitment and lies they have made at the time of taking my loan application. HBL Car loan department Sucks.
you have to make couple of visits to collect NOC and documents after clearance. had very bad experience with them.

[abid110]

Insurance premium refund is calculated based on unexpired number of days in an insurance policy.

if you have paid 100 rupees as premium, roughly 80 is the amount earned by Insurance company. other 20 is fed+federal Insurance fee+sales tax+stamp duty. refund is calculated of that 80 amount based on number of days.

since i deal in Adamjee so i am telling how it is processed here. time of 2-3 months is aweful really on part of your current Insurance company - usually it is settled within a week. secondly, 3.25% premium rate is insane. really insane. when rates for individual for Adamjee is just 2.25% which i arrange for my clients, then for corporate dealings like leasing, it should not be above 2.1%.

[malikhaseeb37]

i appreciate your answer. Can u please guide me where exactly the 4 months insurance money goes i paid with every installment??
Thanks in advance

[abid110]

since you got coverage of 4 months, it is expired. as i mentioned above, refund premium is calculated based on number of days un-expired in the policy considering 365days in a year (total policy days)

[malikhaseeb37]

can you please leave your number here or give me a call at 03234445672.

[abid110]

you can contact me at 03312996638

[pwuser153666427229]

Not to hijack your thread OP, but what is a good company in KHI to get car insurance? I'm getting a lot of calls from TPL to get insurance from them, is it a good company?

[abid110]

Arslan, if you want a good advice, you can contact me at above number. i am in Insurance sector since nearly a decade now and can answer all your concerns. i myself deal in Adamjee.

[pwuser153666427229]

Great, have noted down your num, will contact you in a couple of days