life insurance policy lapsed but deducted amount thru ECS
subramaniam muralimohan
(Querist) 30 April 2010
This query is : Resolved
Dear Sir,
I have taken a Life insurance policy from kotak Mahindra Bank. The premiem amount is Rs.3000/= per month and the same was deducted from my savings account thru ECS method. I did not pay my premium amount for the last six month. When I contacted the customer care service, they informed that my policy was lapsed and there will be no deduction from your account.
But, in the month of April 2010, the amount of Rs.3000/= was deducted from my account as premium for my policy. When I contacted the customer care service of the Kotak life insurance, the informed me that pay the balance premium amount and till then my policy will be remain lapsed condition.
Is it right to deduct the premium amount for the lapsed policy, Sir.
mahendrakumar
(Expert) 01 May 2010
you have not mentioned which insurance company?
since you have not cancelled the ecs authorisation given to the bank earlier,bank can deduct the payment and remit to the insurance company. so if you do not want to your premium to be remitted further,stop the ecs authorisation to the bank.
if your policy is in lapsed state,insurance company cannot adjust one month premium without the revival requirements like proof of good health etc and such the amount would be kept in a suspense account. the same would be adjusted towards premiums when other requirements and balance amount is recieved.
