Sbi life insurance
JOICE GEORGE
(Querist) 07 September 2013
This query is : Resolved
Hi,
I have taken an SBI Smart Performer Policy in which I paid Rs.50000 as premium per year in the year 2010.They promised me highest NAV and assured me good growth.I paid the first premium only.after that I was not able to pay the next two premium .now when it has completed 3 years ,i.e,September 2013,I got a call from the SBI insurance office that my policy is getting cancelled and my money is refunded.I will be getting Rs.26000 only.I asked them about the promises they offered me at the time of joining.but they were giving helpless excuses.I have given Rs.50000 to them believing their assurance of giving above Rs.50000.Eventhough I didn't pay the subsequent premiums,I should get my money back after the surrender charges.that too after 3 years they are giving me Rs.26000 only.Can I file a case against this?will I get judgement in favour of me?I am expecting any expert advice for this ASAP.
Rajendra K Goyal
(Expert) 07 September 2013
The money was accepted by the SBI Life subject to conditions of the offer. The offer was not honored from your side, the refund is as per scheme. Life insurance cover was provided, premium of which may have been deducted with the load factor. Go through the policy document carefully. If any discrepancy noted as against the offer document, write to concerned company and the IRDA.
Kumar Doab
(Expert) 07 September 2013
You are not he first and the only one that has been fooled by M/s SBI and its cousin M/s SBI Life.
Everyday many like you fall victim to SBI, SBI life and other insurance companies selling ULIP.
Banks have become like a departmental store: selling everything under one roof.
Why banks sell insurance, and why banks prefer to sell ULIP: Answer is simple: Huge Profit, Zayada Munaafa…………………
In today’s materialistic world one of the categories of individuals and establishments you should not at all believe is bank and banker…………………….
Have you heard of “Buyer………….. Beware” { Grahak…………….Saavdhan}
You have posted that:
“They promised me highest NAV and assured me good growth.”
Do you have any evidence, proof, witness of any such allurement?
How would you prove?
Even if you can’t prove don’ spare the agent and BM.
Find your means and teach them a lesson or two.
It is loot and by citing signed proposal forms by unsuspecting customers these good for nothing so called professionals are trying to legalize the loot.
Of course you can lodge your averments.
Citizens and countrymen should always doubt sky high promises which are made by bank, bankers, mutual fund agents, equity agents, property agents, ULIP/Insurance agents…………………….and any other.
Guaranteed return by conservative and time tested tools like FD, RD, MIS, PPF, traditional Life insurance…………………, etc has no match. Here everything is in writing and guaranteed.
You may not get any relief if your approach Insurance Ombudsman.
Did the insurance company intimate you in writing that your policy has lapsed, discontinued?
Did the insurance agent leave the company or was terminated and thus policy was orphaned?
You may look into:
INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY
(TREATMENT OF DISCONTINUED LINKED INSURANCE POLICIES)
REGULATIONS, 2010
Go thru the table of charges:
Maximum discontinuance charges for the policies having annualized premium up to
Rs.25,000/-: (It is lower of AP or FV) During the policy year:3 it is max. amount of Rs1500/ only and not Rs.24000/……………..
Provided that where a policy is discontinued, only discontinuance charge may be levied by the insurer, and no other charges by whatsoever name called shall be levied.
In a similar case the cousins of M/s SBI life M/s HDFC life was ordered to deduct only Rs.5000/ as stipulated in above mentioned regulation of IRDA, and not the amounts as wished by M/s HDFC Life…………………….
You may go thru it at:
http://164.100.72.12/ncdrcrep/judgement/1755413070614132776dailyorder2013-06-22-42-2013.html
This may fetch you relief.
Approach your lawyer specializing in such matters and proceed under expert advice of your lawyer.
Keep this thread updated.
JOICE GEORGE
(Querist) 07 September 2013
Hi all ,Thanks for your valuable advice..this is really helpful for common man like us...thanks a lot...
V R SHROFF
(Expert) 07 September 2013
They are least interested in your Life.
THeir motive, Only using your money for years.
Your interest: save 15% Income Tax??
Govt, &^ insurance co interest: Grab total 100%, and return a small part after a dozen of years, no value of money at the time of payment.
If you die: you loose Life & entire world
If remains alive: Loose Lifetime saving.
You are looser on both ends.
sbi/ icici/ lic, gains on both side,. no loss. Your money, they enjoy, Lifetime: at almost nil interest and heavy adm charges ans so on.
Rajendra K Goyal
(Expert) 08 September 2013
Agree, most of the purchasers of these policies buy these due to attractive offers and selling tactics of the agents, most of the promises of whom are without any base. One has to check each and every para of documents and alternately confirm each promise from executives of the company.
Kumar Doab
(Expert) 08 September 2013
Dear Mr. Joice George,
You have stated that “Hi all ,Thanks for your valuable advice..this is really helpful for common man like us...thanks a lot...”
May we point out that we do not want you to have our advice on this topic for free?
Would you please allow asking for a cost for the benefit of fellow countrymen?
It a small cost which will be in pennies………………………………..
You must be having say…………..500 phone numbers in your phone book.
Buy a SMS pack of few rupees and send SMS to one and all on your learning from this thread and ask them to be:
“Beware”
And approach lawyer for such matters.
Send emails. Encourage them and make them properly informed.
Don’t leave your hard earned monies as charity with such companies.
Thus you would be rendering some service to the motherland and fellow countrymen.
Hope you won’t mind.
All such querist shall be advised for free in return.
>>>>> Another trick by M/s SBI was used for its cousins M/s SBI card………………
SBI Credit Card was sold to employees of SBI. These employees did not get CC bills.
All of them were charged with heavy penalties.
All of them settled with CC Company M/s SBI CARDS.
Huge amounts were earned.
Time would you like to believe the biggest bank SBI and banker from SBI?
Or for that matter other banks and bankers’?
You should not.
NO one should believe them.
>>>>> Download and save the regulations and Acts passed by IRDA mentioned below and go thru these.
Don’t hesitate to approach your lawyer when you face a situation from Life Insurance Companies including LIC………………….The resolution is with lawful authority and courts……………….hence do not shy from approach courts……………
AFTER ALL STATE AND COURT IS PARENS PATRIAE………..
(STATE AND COURT IS PARENT TO THE NATION)…………….
>>>>> Wise politicians advised fellow politicians if you want to rule “rule the courts”……………
{ Calderon: What's most bewildering to Her Majesty... is this arrogant independence of the American courts. After all, if you cannot rule the courts, you cannot rule.
Martin Van Buren: Señor Calderon, as any true American will tell you, it's the independence of our courts that keeps us free.}
Which implies send your own men in courts as Judges to decide………………….
Thwart all such attempts in our ‘Republic of India’.
Let appointment of judges is not the prerogative and choice of politicians.
Isn’t is true that it's the independence of our courts that keeps us free.
If courts are also stuffed with men of the politicians
STATE AND COURT WON’T BE PARENS PATRIAE………..
(STATE AND COURT WON’T BE PARENT TO THE NATION)…………….
>>>>>During initial years each life insurance company kept Mortality table of all of its policies on its web site. This table would indicate the cost of insurance (Bima) age wise for each policy. Thus you could compare the cost each company wise. IRDA failed to standardize it and make it equal across all companies.
Although all companies took mortality experience of LIC as a reference standard as only LIC had a practical experience of mortality in India……………….before the arrival of private life insurance companies.
As per various service offered all companies could have prepared list of charges.
Instead of it all companies removed mortality table from its web site.
The only method now is to look at PQIS of various and compare.
Do the citizens look at it with due seriousness?
People buy grocery with more seriousness than insurance…………………..
People do not have time or bother to spend quality time on insurance. This is what the agents /BM’s of the companies exploit.
What has prompted private players across the world to tie up with Indian Life Insurance companies?????
Only 6% of the insurable population of India was insured……………………………..
Hence the potential was huge.
POTENTIAL TO FOOL AND LOOT WAS HUGE.
AND HUGE AMONTS FROM HUGE NUMBER OF CITIZENS HAS BEEN LOOTED………………………
WHAT IS BOTHERING IS OUR OWN SONS AND DAUGHTERS, BROTHERS AND SISTERS, COUSINS AND UNCLES LOOTED US…………………………
The modus operands were simple and well thought.
Employ local sons and daughters of the soil. Prefer people from NON Insurance background as they would be easy prey. (There were questions in job applications like; for how many years you have been at current location/town. You are native of which town? How many people you know in this town, prepare and submit list with address and phone numbers………………………!! This list is primary market. One manager shall have to recruit 10 agents in a month and get them pass in Insurance Inst. If India exam and then activate the. Each agent shall need to log in 10 policies in the month he/she has passed and is licensed.
This agents/unit manager/development officer/BM of the company would be given allurements like extra payouts, gifts………………………………..
THERE ARE NO FREE LUNCHES.
THIS AGENTS/UNIT MANAGER/DEVELOPMENT OFFICER/BM OF THE COMPANY WOULD CON THEIR OWN BROTHERS AND SISTERS, COUSINS AND UNCLES…………………………..COLLEAGUES, FRIENDS, NEIGHBOUERES………………
ONCE THE RPIMARY MARKET IS EXHAUSTED EITHER THEY WERE SHUNTED OUT/FORCED TO RESIGN/TERMINATED OR WERE FORCED TO LOOK AT SECONDARY MARKET AND THUS BECOME SEASONED CONMAN……………….EMOTIONLESS, INSENSITIVE……………….
SINCE THE MARKET IS HIT BY RECESSION THERE ARE FEWER JOBS AND NOTHING ELSE TO DO HENCE THEY CONTINUED TO CON THEIR FELLOW COUNTRYMEN
ARE YOU AWARE WHICH COMPANY IS CONTEMPLTING TO SELL ITS OPERATIONS TO TOHER COMPANIES……………..WHICH FOREIGN PARTNER IS CONTEMPLATING TO MOVE OUT OF ALLIANCE…………………?????
>>>>>> MANY OF THE CUSOMERS FALL FOR CUT IN COMMISSION FROM AGENTS………………….AND END UP LOOSING THEIR HARD EARNED MONIES.
THE GOOD OLICIES WHICH OFFER BETTER RETURNS OFFER LOW COMMISSION TO THE AGNETS………………AND INCENTIVES TO MANAGERS………………
THESE ARE NOT PROMOTED.
IN THE END WHO IS IN LOSS; CUSTOMER.
{ REMEMEBER : APNI JEB SE KOI NAHI DETA}
>>>>> IRDA made t mandatory for the Life Insurance companies to generate and provide PQIS (Benefit Illustration) of the policy/scheme showing charges to be levied during each year of the tenure of the scheme, and returns ( Tentative: Not Guaranteed) @ 6% and 10% in tabulated form.
The PQIS is to be signed by both proposer/life to be insured and agent/unit manager/development officer/BM of the company.
Does any one look at this? Majority of the time the unsuspecting citizen’s sign on the dotted line, without checking and verifying the details, like they sign on blank proposal form.
Or more appropriately is any one provided with or shown this?
Majority of the time the agent/unit manager/development officer/BM of the company forge signature on this statement.
The copy of this PQIS is provided as a part of the policy document along with copy of the proposal form. Again does any one check and verifies?
During the free look period of 15 days from date of receipt of the policy the policy holder can cancel the policy and collect refund.
IRDA in initial years miserably failed to put in check and controls. There are publications alleging soft approach pointing towards conceived connivance……………………………
{ IRDA soft on insurance companies flouting norms
http://articles.timesofindia.indiatimes.com/2012-06-12/india-business/32194051_1_insurance-rules-bharti-axa-life-insurance-irda-act}
>>>> Insurance Regulatory and Development Authority (Protection of Policyholders’ Interests) Regulations, 2002.
www.irdaindia.org/regpolpro.rtf
>>>> INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY
(TREATMENT OF DISCONTINUED LINKED INSURANCE POLICIES) REGULATIONS, 2010
file:///F:/my%20docs%20back%20up/IRDA/459-irda-treatment-of-discontinued-linked-insurance-policies-regulations2010.htm
>>>> Life_Insurance_Handbook
>>>>> Insurance Regulatory and Development Authority (Protection of Policyholders’ Interests) (Amendment) Regulations, 2002.
>>>>> Report of the Committee on Health Insurance for Senior Citizens
>>>>> INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY (Standardization of terms &
conditions of ULIP Products and treatment of lapsed policies) REGULATIONS, 2010
>>>>> Guidelines on Grievance Redressal
>>>>> surrender charges discontinued policy
>>>>> Report of the Committee on Health Insurance for Senior Citizens
>>>>> THS INSURANCE ACT, 1938
>>>>> http://www.medindia.net/news/irda-to-do-away-with-the-age-limit-for-purchasing-health-insurance-97262-1.htm
Home » Health Insurance News
IRDA To Do Away With The Age Limit For Purchasing Health Insurance
>>>>> INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY
(HEALTH INSURANCE) REGULATIONS, 2012
>>>> http://businesstoday.intoday.in/story/tips-to-claim-insurance-money-prevent-rejection/1/18158.html
Avoid getting Trashed
>>>>> THE GAZETTE OF INDIA:EXTRAORDINARY:PART III SECTION IV
INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY
(TREATMENT OF DISCONTINUED LINKED INSURANCE POLICIES)
REGULATIONS, 2010
JOICE GEORGE
(Querist) 10 September 2013
Hi Mr.Kumar the information you gave was really very useful.So I checked the Irda rule.,as I mentioned,The policy I took was a unit linked policy.As per the the IRDA rule,if the policy is lapsed,they shouldn't charge more than 5% in the 4th year.or if it is lapsed from the 2nd year it shouldn't be more than 10%.So in that case,I should get Rs.50000-10%=45000 and plus or minus the current fund value.or the highest NAV value as per their promise,(if applicable for me as I have paid the first premium only).Your suggestions appreciated....
Rajendra K Goyal
(Expert) 11 September 2013
There seems to be something missing. Highest NAV was what? Secondly whether it was applicable for lapsed policies or not? What was the NAV at the time of payment?
Kumar Doab
(Expert) 11 September 2013
VALUABLE ADVICE OF SENIORS AND LEARNED EXPERTS IS SOUGHT.
The cue is taken from your last post.
The impression is that your understanding of the charges to be levied by Insurer and amounts to be paid to insured (You): is not correct, and you have not carefully gone thru the regulations and the judgment of the commission quoted for your convenience and benefit. In case you are facing any difficulty you may consult your elders in the family and your lawyer.
>>> If the policy had entered in 4th year the discontinuance charge is Lower of AP or FV subject to max. of Rs.1500/
Thus you should get (50000-1500) + (min. Interest rate @ 3.5%/pa) from the date of discontinuance which would be dated……………( 1 year from date of inception of policy + Grace period of 1 month as during grace period policy remains in force)
Therefore your impression that you should get Rs.50000-10%=45000 and plus or minus the current fund value, should be wrong.
>>> You may carefully go thru: INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY
(TREATMENT OF DISCONTINUED LINKED INSURANCE POLICIES) REGULATIONS, 2010
Definition: Sec 2 (1) (xi) :
Discontinuance Charge
Sec 4……………..
Sec 5 (i)…………………
Sec 6 (1), (2) (i) : To add min. Interest rate @ 3.5%/pa……………….
Sec 7 especially sub sec (v)………………..
{ (Lower of AP or FV subject to max. of Rs.1500/) (Provided that where a policy is discontinued, only discontinuance charge may be levied by the insurer, and no other charges by whatsoever name called shall be levied.) }
Sec 8(ii)……………….( since some misselling was done M/s SBI life must disclose on its own this as reason of discontinuance. Provided you had reported misselling.)
>>> You should avoid going by the explanations given to you by the Insurance Company or its employees.
>>> Kindly educate as many as possible in your social, personal, professional circle and put the learning’s on as many as forums known to you.
WOULD YOU DO IT.................!!!
>>> Don’t get entangled with terms like
Highest NAV: Generically the terms should imply the highest NAV of the fund chosen by insured from date of inception of policy till date of discontinuance/maturity/claim…………………NAV is published in financial newspapers /journals /website of company.But does the insurance company declare which stock/equity/MF/artifacts it has bought/sold and what price and what profit it has accrued……………………………….The fund managers of the company might be buying/selling everyday/many times a day …………………on profit. They never accrue loss or they loose job.
Although policyholder’s money is used, but this poor man is always in loss and company is always in profit.
Policy Year: Premium is paid in advance. So while you may calculate 3 years by 12 months from policy anniversary the insurance company would scream for 4th premium as well crying for policy years by its definition, coined by them.
>>> Forget about the Lollipops, Candy’s, Carrots dangled by the Insurance Companies (M/s SBI Life in your case), Banks and Bankers that are either owners/partners/ corporate agents/ agents……………………………………..etc of these Insurance Companies.
These companies, their employees, Banks and Bankers are habitual, hardcore, seasoned offenders……………..
They would keep on committing the same violations again and again even after getting penalized by lawful authorities and courts of law because no one has taken the matter to its logical conclusion and no one has been put behind bars…………………………..although many should have been in correctional centers (jail) by now.
NO complainant convinces the court that the company is habitual offender and penalty should be huge this time.
They get away with mild penalty of few hundred rupees and back to the same job of violation of law, rules, rights…………………………because the complainant, lawyer. Court has done nothing to deter them and they remain UNDETERRED.
Whereas in case of ordinary citizens they would suffer severe penalties for committing the same offence ………………………………………..e.g; for traffic rules violation of one rule next time the penalty is high and 5th time the Driving License can be yanked permanently………………………………….
