I have taken a home loan from SBI bank under max gain scheme of Rs. 18 Lakhs in April 2013. Along with that they also given me home loan insurance policy under RiNN Raksha scheme of amount 57000. Premium of this insurance is clubbed with EMI of the home loan. For insurance, I need to pay 11326 per year for 5 Years. Yesterday, on 29-June-2016, I have pre-closed my home loan (OD) account but bank manager asking me to also close the insurance account by paying the outstanding amount of Rs. 53,229. But, for the insurance account I have already paid premium of Rs 11326 for four years and last premium I need to pay in April 2017. I have also checked with the SBI Life Insurance office, they told me that you have already paid for four years but bank manager is not agreeing and he is asking to pay the outstanding amount that is shown in insurance account. As per him, unless n until, I close the insurance account, he will not issue me the closure letter and also I will not get the property papers back.
Can you please let me know what is outstanding amount insurance account and also it is true that manager will not issue the home loan closure letter even though it is closed now?
PFA the screenshot for the insurance account.