I have purchased a life insurance policy from a private reputed insurance company in 2012. The policy term was 7 years to pay seven yearly premiums with a maturity term of 10 years. I have already paid six years of premiums, and the last premium is due in two months.
However, I found that they have not fulfilled the policy bonus terms. In the policy document, an illustration is attached that shows a calculation of 6 to 10 percent bonus every year. However, the bonus declared till date is only approximately 2% yearly. I am highly frustrated with the insurance company's performance regarding the bonus. I requested them to advise on the surrender value, and I was shocked to find out that they have deducted over 40% of the total premium paid when calculating the surrender value, which does not align with the IRDA guidelines stating a minimum of 90% to be refunded after five years.
I seek your opinion on whether I can file a legal case against the insurance company at the Consumer Redressal Forum or which is the appropriate authority to address this issue. Can the matter be taken up with IRDAI?
Best regards,
Arbind K Shaw
From India, Calcutta
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However, I found that they have not fulfilled the policy bonus terms. In the policy document, an illustration is attached that shows a calculation of 6 to 10 percent bonus every year. However, the bonus declared till date is only approximately 2% yearly. I am highly frustrated with the insurance company's performance regarding the bonus. I requested them to advise on the surrender value, and I was shocked to find out that they have deducted over 40% of the total premium paid when calculating the surrender value, which does not align with the IRDA guidelines stating a minimum of 90% to be refunded after five years.
I seek your opinion on whether I can file a legal case against the insurance company at the Consumer Redressal Forum or which is the appropriate authority to address this issue. Can the matter be taken up with IRDAI?
Best regards,
Arbind K Shaw
From India, Calcutta
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First file a complainant to the Insurance Company Consumer redress forum. Keep the ack with you. After 30 days file a complaint before the State Insurance Ombudsman.
From India, Madras
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302From India, Madras
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Terms and conditions will be printed on the policy document. Terms regarding surrender would be clearly mentioned. Anyway, with only one more installment of premium remaining, suggest holding on and taking maturity benefits. Hasty decisions will not benefit you. Always buy a policy after studying all aspects. Agents always highlight what helps in selling and may not explain negative factors well enough.
From India, Pune
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From India, Pune
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