Bank offering personal accident insurance along with financing

[andreww]

Guys,

Long story short: buying a car via bank financing (Tanachart), 25% downpayment, 5 years term, total loan amount is 1.2M thb.

In addition to whatever dealership says on financing, bank requires us to purchase a personal accident insurance for my Thai wife (as she's the main applicant, because I dont have a w/p), so in case smth happens to her, loan can be paid off. Catch is: I am the money provider, i.e. bank gathers proof of mine income to approve the loan, not hers, but wants her to get an insurance? 

Insurance cost if 50k thb for 5 years (10k per annum), paid UPFRONT,  i.e. effectively adds 50k thb to the downpayment. Insurance covers any accident (50k thb per claim) and 2M thb for death.

 

Now, 2 questions:

1) how legit is the bank's requirement to buy this insurance for the non-paying party?

2) how good are those insurance costs/terms anyway? It's a good idea to have insurance regardless...

 

Thanks!

 

[MrJ]

I had the same with Honda and financing over Kasikorn, 5 years 475 THB per month on top of the monthly payment

[Ronuk]

The cashiers at the bank are on a commission. It all depends how 'Helpful' you want these people to be with you in the future as to whether you take the insurance or not. Remember that invariably 'No can do' suddenly becomes 'Yes can do for you'. I suppose it all depends what you may need in the future.

[stevenl]

2. Sounds like a really bad and expensive deal.