How to exit an unwanted Insurance Policy?

1. 

   Anonymous
   

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   I retired in June 2010 at the age of 60 years and got about Rs. 10 lakh as my retirement benefits which was my lifelong savings. I contacted a big and highly reputed investment company in New Delhi to suggest how to invest this as to get good returns. I told them that I do not get any pension and I am not in tax bracket. I was a layman at that time and I did not have any knowledge of investment schemes.

   They sold me following 2 policies in July 2010 saying that I will get very attractive returns on them after 3 years -

   1. Kotak Single Invest with a single premium of Rs. 1 lakh

   2. Bajaj Allianz Group Unit Gain Policy with a single premium of Rs. 2 lakh

   They made me invest the remaining 7 lakh Rupees in 3 ELSS Mutual Funds (3 lakh + 2 lakh + 2 lakh). I did not get any 80C tax relief as I do not earn anything.

   In August 2011, I received my annual Statement of Accounts for the above policies. To my horror, I discovered that Rs. 1 lakh in Kotak single invest had already depleted to Rs. 80 thousand and Rs. 2 lakh in Bajaj Allianz had depleted to Rs. 1.5 Lakh since they had deducted premium allocation charge and mortality charge which were never told to me. Premium allocation charge is a one-time charge and is equal to a hopping 10% of the premium paid. Mortality charge is about Rs. 800/- per month in Kotak Single Invest and about Rs. 1550/- per month in Bajaj Allianz. There are some other minor charges also. Service Tax is extra.

   I do not need any insurance as I do not earn anything. If I die, my family, which consists of only my wife, will suffer no financial loss due to my death.

   I cannot return these policies before three years, i.e., before July 2013. By then, almost all of my 3 lakh Rupees will be lost mainly due to the mortality charge. I have asked the insurance companies to remove the insurance cover on my life and stop deducting mortality charge, but they do not agree. The investment company who sold these policies to me does not talk with me now. My lifelong saving is being robbed before my eyes and I cannot do anything. What should I do? Kindly help me. I am in distress.

   Posted 3 months ago #
2. 

   yorkmax
   

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   Joined: Oct '11
   Posts: 30

   Reputation:31

    

   thanks for the information dear

   Posted 3 months ago #
3. 

   Pooja
   

   member
   Joined: Jun '09
   Posts: 28

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   Hi, one can file online complaint through concerned insurance company's website and if they fails to resolve the issue than it can be further escalated to Insurance Regulatory And Development Authority (IRDA).

   Posted 3 months ago #
4. 

   bhanupratap2
   

   new member
   Joined: Jan '12
   Posts: 1

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   Don't worry continue the policy for three years then cnvert it to PAID UP status so that life cover is not given and monthly deductions will be stopped. When market booms and fund value is good then surrender the policies nd exit from this torture as done by all ULIP companies.

   Posted 3 months ago #
5. 

   yorkmax
   

   member
   Joined: Oct '11
   Posts: 30

   Reputation:31

    

   thanks puja.

   I want to share something here i buy a policy from icici bank but the agents sold me with life insurance some wrong information but believe me that i got a call from their back office and they told me each and every thing about the policy and then i realized that i got a false policy so what they did is they gave me my money back within 10 days... these day every bank and insurance providers trying to improve their services.

   Posted 3 months ago #

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