Ask Us: Insurance

If you have made all payments on time and missed only one payment because of the cheque bounce,the maximum interest that you would have to pay is for one year.

How can I discontinue an LIC policy? I hold this policy since 2004,and I have paid the premium till 2008. LIC,however,has told me that my cheque for 2005 bounced and they are demanding the interest for all payments since 2004. Can I approach the consumer forum? I have already complained to IRDA,but haven8217;t received any response.

Jitendra Kumar Gupta,Danapur

If you have made all payments on time and missed only one payment because of the cheque bounce,the maximum interest that you would have to pay is for one year not more than that. There is no reason why you need to pay interest for premiums paid by you on time. But I would like to mention that it is the customer8217;s responsibility that cheques issued by him do not bounce.

If the LIC branch closest to you cannot help,then please contact the LIC Customer Zone in Patna and if not satisfied with their response,you may approach the Insurance Ombudsman in Kolkata.

I am 62 and my wife is 60. We have two policies,with Tata AIG Life in my name and with SBI Life in my wife8217;s name. We subscribed to these policies in good faith. We paid two instalments to both companies. I wish to break my insurance policy as I need the money urgently. But I was told that I will be able to get 90 per cent of the invested value only next year. What can I do?

Ashok Jain,Ambala

Unfortunately,it seems to be a case of mis-selling where the consumer has not been properly informed about the product being sold. I assume these are ULIPs which have a three year lock-in period and are basically long term investment products. The lock-in period is decided by the insurance regulator so that the consumer stays invested for a minimum period for the investmentsto grow and show positive results. You should write to the insurance companies explaining the manner in which the product was sold and request for a refund. I would advise you to stay on till your investments turn positive. If you exit now,the money returned will be less than what you have invested.

Can a customer seek refund of premiums if not satisfied with the policy,after purchasing it?

Rachna Raj,Kolkata

The policyholder can seek refund of premiums if s/he disagrees with the terms and conditions of the policy,within 15 days of receipt of the policy document,called the Free Look period. The policyholder shall be refunded the fund value including charges levied through cancellation of units subject to deduction of expenses towards medical examination,stamp duty and proportionate risk premium for the period of cover.

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Deepak Yohanan is CEO,MyInsuranceClub.com
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