Published Paper Details:

Housing loan insurance plays a crucial role in mitigating credit risk for lending institutions and protecting borrowers against unforeseen contingencies such as death, disability, or income loss. In Karnataka, the rapid growth of housing finance has increased the relevance of mortgage-linked insurance products. This study evaluates the pattern, frequency, causes, settlement efficiency, and financial implications of housing loan insurance claims in Karnataka over a five-year period (2019-2024). Using secondary data from selected housing finance companies (HFCs), commercial banks, and insurance providers, along with structured primary responses from policyholders, the study applies descriptive statistics, correlation, and regression analysis to examine claim ratios, settlement turnaround time, and claim rejection rates. The findings reveal that while claim incidence remains moderate, delays in documentation and lack of borrower awareness significantly affect settlement efficiency. The study highlights the importance of streamlined claim procedures, digital claim tracking systems, and improved borrower education to enhance policy effectiveness. The research provides practical recommendations for insurers, banks, regulators, and policymakers to strengthen housing loan insurance mechanisms and ensure financial stability in Karnataka's housing finance sector.