Legal Question in Banking Law in India

A person in India known to me has taken a personal loan from a private bank. Knowingly, there was no guarantor nor any co-applicant. The loan was covered with accidental death insurance coverage. The person repaid the loan for around an year regularly, without fail. He was emplyed and attending his duties regularly and was of sound health. Suddenly he was deteced with advance stage of Pancreous cancer and within fortnight of detection, he died.
This happened eight months back. The loan repayment was through bank ECS. His family has informed the bank about his demise. Bank insurer is not willing to treat it as accidental death and hence no coverage. After the left out money in the bank in his acoount exhausted by taking some ECS by bank ( which was a single account, even withot any nominee) , the bank is presently following up his wife ( through visit/phone call/legal letter in name of borrower) to repay the balance amount. He left his unemployed wife and school going son. His wife is not in a position to repay the balance loan.
Does his family legaly bound to repay the loan? How can she now tackle the bank approach?

Asked on 6/28/11, 2:03 am

J. Radhakrishnan independent Practice

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The Bank cannot proceed against the wife unless the deceased husband had left some immovable property in her hands.

Answered on 6/28/11, 11:05 am

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