u/Deep-While-4988

I’m dealing with a banking-related situation and trying to understand the best way to handle it. It’s a bit confusing and I don’t want to take the wrong step.

If anyone here has experience in banking or financial matters, I’d really appreciate a quick chat. Feel free to DM.

Thanks 🙏

Hi everyone,

I’m dealing with a home loan situation and could really use some practical advice from people who’ve gone through similar cases.

My father had a home loan with ICICI Bank. Unfortunately, he passed away last year after a prolonged illness (cancer). During the last year of his life, he was not receiving salary and the family was under severe financial distress, as he also had multiple financial obligations including borrowings from private sources.

There was a loan-linked insurance policy, and the claim was approved. Around ₹11.78 lakh was paid directly to the bank.

However, the issue is:

• Loan tenure: ~253 months
• Insurance cover: only 120 months (reducing cover)
• Because of this mismatch, the insurance didn’t fully cover the loan

After adjustment, around ₹6.8 lakh is still outstanding.

Additional context:

• The house is incomplete (no finishing like tiles/paint), so resale value is not great right now
• No stable income currently (pension/job expected soon)
• I’ve now arranged some funds (gratuity) and want to resolve this
• The loan was solely in my father’s name (I’m not a co-borrower)

I approached the branch for relief/settlement, but they refused to entertain it.

Now I’m considering: 👉 Escalating and trying for a One-Time Settlement (OTS)

My questions:

1. Has anyone successfully negotiated a settlement in a case like this (death + partial insurance coverage)?
2. What kind of settlement % is realistic on ~₹6.8L outstanding?
3. Any tips on how to approach ICICI (grievance / nodal officer / RBI complaint)?
4. How strongly should I push the “insurance tenure mismatch” angle vs financial hardship?

I’m trying to decide whether to:

• push for settlement and negotiate, or
• just pre-close and move on

Would really appreciate any real experiences or advice 🙏

Hi everyone,

I’m dealing with a home loan situation and could really use some practical advice from people who’ve gone through similar cases. My father had a home loan with ICICI Bank. Unfortunately, he passed away last year after a long illness (cancer) ( since mid 2024 ). There was a loan-linked insurance policy, and the claim was approved and ~₹11.78 lakh was paid directly to the bank.

However, the issue is:

Loan tenure: ~253 months

Insurance cover: only 120 months (reducing cover)

Because of this mismatch, the insurance didn’t fully cover the loan

After adjustment, around ₹6.8 lakh is still outstanding.

Additional context:

The house is incomplete (no finishing like tiles/paint), so resale value is not great right now No stable income in the family at the moment (pension/job expected soon) I’ve now arranged some funds (gratuity) and want to close this matter I approached the branch for relief/settlement, but they refused to entertain it. Now I’m considering: 👉 Going for a One-Time Settlement (OTS) by escalating to higher authorities

My questions:

Has anyone successfully negotiated a settlement in a case like this (death + partial insurance coverage)?

What kind of settlement % is realistic on ~₹6.8L outstanding?

Any tips on how to approach ICICI (grievance / nodal officer / RBI complaint)?

Should I push the “insurance tenure mismatch” angle strongly, or focus more on financial hardship?

I’m trying to decide whether to: push for settlement (and save some amount), or just pre-close and move on

Would really appreciate any real experiences or advice 🙏