Currently I have a small mortgage loan with Hong Leong Bank and today I received a letter from them telling me that they are going to automatically include an extension of landslip coverage into my existing insurance policy if I do not contact their insurance company, Hong Leong Assurance within 30 days to decline. And if I don’t do that, I will have to pay for the additional coverage.
Why on earth would I want a landslip coverage when my landed property is neither at the top nor the foot of a hill, and the nearest hill is a few kilometers away? I understand that the bank needs to protect their own interest but why push it to the customers regardless of whether they need it or not, and putting the onus on them to decline it, failing which they will have to bear the additional unnecessary cost. Isn’t this an unfair practice?
They should at least send a letter to enquire if I need it. What happens if I did not receive this letter or I failed to respond due to some unforeseen circumstances? I really wonder if this is how banks collaborate with their insurance counterparts to squeeze their customers? I have written to the Star newspaper to highlight this so that more people are aware of it. Otherwise, many will be paying unknowingly. At the same time, I am contemplating to complain to the central bank (Bank Negara Malaysia) too.
This is simply daylight robbery. The bank behaved as if they have a right to my wallet and if I don’t stop them, they can take anything as they please. And of course I have called their insurance company to not only decline but also to give them a piece of my mind.
Have you had any previous bad experiences with any of your bankers? I am sure you do at some point of time in the past.