Location/place: Maharashtra Mumbai
Name of company/service: LIC
Date: 29-06-2013
To: Consumer Court, Mumbai
Sub: Undue loot by LIC
Ref: LIC Policy No.894323817 – Jeevan Saral (with Profits) issued on 24-06-2010 with yearly
Premium of Rs.48,040/-
LIC is an insurance company specifically for the benefit of all classes of society and motto should be “LIC to the rescue of Mankind”. LIC’s Agents in the first place should invariably explain, make the customer understand, update on the terms/conditions of the policy before compelling anybody to make commitments.
Regret before selling any LIC policy, the Agents extensively and breathlessly pop into our house saying that the policy is very good and has various advantages like this and like that. They do not even try to explain the authenticity and negative hidden clauses at that time. However, after much persuasion by them and also to please them because of their monetary difficulties we are compelled to buy LIC Policies on the expectation that there would be continuous cash flow due to my steady job and good health.
This did not happen in my case, as in September 2011, I lost my job and there was no other means of income. I was also unable to pay the 3rd premium in June 2012. Well under the circumstances I had no alternative but to approach LIC on 6th June 2012 for surrendering the aforementioned policy for refund together with any profits due etc. for the period. At that time I was told that at least minimum of 3 years should be gained in order to make payment of this policy. However, I again approached LIC on 23rd June 2013 for surrendering the policy, wherein, I was given the LIC policy surrender form and was told to write a letter about the difficulties of paying premium. When on final submission with all relevant papers, I was informed that there will not be any refund value and the whole amount will forfeited (as policy has lapsed) stating various terms and conditions of the policy due to which I am not liable for any single paisa. Also was told that minimum of 3 years of premium have to be paid after reviving this policy. But, even after paying 3 premiums there would be only 30%-35% refund value which would be only Rs.50,442/- (out of Rs.144,120/-). Well this is very ridiculous on the part of LIC to make hidden and ambiguous clauses/terms & conditions, only for the benefit of LIC. This is an open loot by LIC siphoning hard earned money from simple and middle-class people.
I pleaded and did mentioned to the officials that I am in stringent financial crises and requested to at least make me 90% of the premiums paid to them, but, vehemently put forth the terms and conditions which did not attract any surrender value. This is totally incorrect. LIC is a big ocean and my premiums paid is just a drop in the large ocean, which, LIC can easily deal with. It is observed that LIC has framed their laws and by-laws very rigidly only to safeguard their own interest alienating the common mans rights and privileges forcing him to bite the dust even after investing huge amount of money. Just for e.g. if I had invested the 2 premiums amount of Rs.96,080/- in bank FD I would have earned easily to the tune of Rs.721/- p.m., so I am actually on loss of Rs.9080/- for the year 2012/- end. I should not have fallen prey to the LIC agent and incurring a total loss of Rs.1,05,160/- together with mental tensions.
Request your urgent intervention and render me your kind help to sort out the issue in this difficult monetary situation.
Thanking you,
Yours sincerely,
Prabhakar N. Mendon
GSM# +91 8879562730
Address: 501/Vajransh CHS, Holy Cross Rd. Extn. I.C. Colony, Borivali (W), Mumbai-400103
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