Comments on: Mis selling by an LIC agent http://www.jagoinvestor.com/2009/10/mis-selling-by-lic-agent.html Financial Planning , Insurance , Mutual Funds , Investments Fri, 10 Feb 2012 15:50:18 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Manish Chauhanhttp://www.jagoinvestor.com/2009/10/mis-selling-by-lic-agent.html#comment-28397 Manish Chauhan Sun, 23 Oct 2011 07:04:13 +0000 http://www.jagoinvestor.com/?p=274#comment-28397 KD Joshi Yes you can stop paying the premiums now ,your fund will not get further investments and the costs will be cut from the fund value .. thats the disadvantage . do you really understand how that works ? If not ,then get out totally Manish KD Joshi

Yes you can stop paying the premiums now ,your fund will not get further investments and the costs will be cut from the fund value .. thats the disadvantage . do you really understand how that works ? If not ,then get out totally

Manish

]]> By: k d joshihttp://www.jagoinvestor.com/2009/10/mis-selling-by-lic-agent.html#comment-28311 k d joshi Thu, 20 Oct 2011 10:19:14 +0000 http://www.jagoinvestor.com/?p=274#comment-28311 hi. i purchased LIC Market plus in 2008 and have completed 3 years . i was paying Rs 10000 half yearly in growth fund. Can i stop paying premium now? what are the advantages and disadvantages? hi.
i purchased LIC Market plus in 2008 and have completed 3 years . i was paying Rs 10000 half yearly in growth fund. Can i stop paying premium now? what are the advantages and disadvantages?

]]> By: Manish Chauhanhttp://www.jagoinvestor.com/2009/10/mis-selling-by-lic-agent.html#comment-10348 Manish Chauhan Mon, 07 Jun 2010 07:45:36 +0000 http://www.jagoinvestor.com/?p=274#comment-10348 Mahesh most of the things are true for any ULIP , points like 2,3,4,5 are because of new regulations from IRDA and something specific to LIC . IGNORE . Manish Mahesh

most of the things are true for any ULIP , points like 2,3,4,5 are because of new regulations from IRDA and something specific to LIC . IGNORE .

Manish

]]> By: maheshhttp://www.jagoinvestor.com/2009/10/mis-selling-by-lic-agent.html#comment-10346 mahesh Mon, 07 Jun 2010 07:35:44 +0000 http://www.jagoinvestor.com/?p=274#comment-10346 Hi.. I received following adv from my LIC agent and want to get some opinion on LIC's ULIP plan, how it is different than other ULIPs ? Email stated, "10 Reasons to buy Market Plus-I of LIC 1. Market Plus-I shall be withdrawn w.e.f. 1st July 2010. The new avatar of the plan shall not have a lot of attractive features currently available. 2. The entry age 75 years shall not be available in the popular ULIP. 3. The ULIP shall not be available Without Life Cover. 4. There shall be no provisions to avail Top Up without Life Cover. 5. The Lock-in Period shall be of 5 years instead of 3 years. 6. Market Plus-I plan has 'No Surrender Charges' for the surrender after 3 years from the date of commencement. 7. Market Plus-I is one of the highest selling ULIP's of LIC and the big fund size has its own advantages in terms of better investment opportunities as well as proportionately lower average administrative expenses. 8. Market Plus-I NAV Performance* as on 25th May 2010 is as follows: FUND LAUNCH DATE NAV (17.06.2008) NAV (25.05.2010) (708 DAYS) GROWTH Bond Fund 10.00 11.95 19.50% Secured Fund 10.00 11.65 16.50% Balanced Fund 10.00 11.64 16.40% Growth Fund 10.00 12.73 27.30% (*Not guaranteed; depends on the Market; Past performance is not indicative of the future performance) 9. Market Plus-I is already regulatory compliant in terms of the ULIP instructions concerning the charges etc., implemented w.e.f. 1st January 2010. 10. Market Plus-I is a pension plan and the amount invested upto INR 1 Lac per annum qualifies for the Income Tax Benefits U/S 80C irrespective of the mode of payment (single or annual) and extent of risk cover (with or without life cover). Hi.. I received following adv from my LIC agent and want to get some opinion on LIC’s ULIP plan, how it is different than other ULIPs ?

Email stated,

“10 Reasons to buy Market Plus-I of LIC

1. Market Plus-I shall be withdrawn w.e.f. 1st July 2010. The new avatar of the plan shall not have a lot of attractive features currently available.

2. The entry age 75 years shall not be available in the popular ULIP.

3. The ULIP shall not be available Without Life Cover.

4. There shall be no provisions to avail Top Up without Life Cover.

5. The Lock-in Period shall be of 5 years instead of 3 years.

6. Market Plus-I plan has ‘No Surrender Charges’ for the surrender after 3 years from the date of commencement.

7. Market Plus-I is one of the highest selling ULIP’s of LIC and the big fund size has its own advantages in terms of better investment opportunities as well as proportionately lower average administrative expenses.

8. Market Plus-I NAV Performance* as on 25th May 2010 is as follows:

FUND
LAUNCH DATE

NAV (17.06.2008)

NAV (25.05.2010) (708 DAYS)

GROWTH

Bond Fund

10.00

11.95

19.50%

Secured Fund

10.00

11.65

16.50%

Balanced Fund

10.00

11.64

16.40%

Growth Fund

10.00

12.73

27.30%

(*Not guaranteed; depends on the Market; Past performance is not indicative of the future performance)

9. Market Plus-I is already regulatory compliant in terms of the ULIP instructions concerning the charges etc., implemented w.e.f. 1st January 2010.

10. Market Plus-I is a pension plan and the amount invested upto INR 1 Lac per annum qualifies for the Income Tax Benefits U/S 80C irrespective of the mode of payment (single or annual) and extent of risk cover (with or without life cover).

]]> By: How to surrender an Insurance policy in Indiahttp://www.jagoinvestor.com/2009/10/mis-selling-by-lic-agent.html#comment-8643 How to surrender an Insurance policy in India Sun, 02 May 2010 16:41:13 +0000 http://www.jagoinvestor.com/?p=274#comment-8643 [...] were mis-sold that policy by an agent who promised moons and stars to [...] [...] were mis-sold that policy by an agent who promised moons and stars to [...]

]]> By: Manish Chauhanhttp://www.jagoinvestor.com/2009/10/mis-selling-by-lic-agent.html#comment-1415 Manish Chauhan Tue, 27 Oct 2009 16:10:31 +0000 http://www.jagoinvestor.com/?p=274#comment-1415 @Subramoney <br /><br />I understand and agree with your point . Ignorance can not be considered as the reason for sympathy , but in our country like India , where people hardly have any knowledge in Financial planning and have a mentality which is not very helpful in Financial planning , Everyone will just shout after they are cheated . <br /><br />We are now slowly coming to an era where people should be aware of what they are doing and take responsibility for that what have bought, Thats the reason why 99% of Insurance policies holders have actually messed up there Insurance by taking Endowment policies which hardly cover them .. <br /><br />What do you think about that ?<br /><br />Manish @Subramoney

I understand and agree with your point . Ignorance can not be considered as the reason for sympathy , but in our country like India , where people hardly have any knowledge in Financial planning and have a mentality which is not very helpful in Financial planning , Everyone will just shout after they are cheated .

We are now slowly coming to an era where people should be aware of what they are doing and take responsibility for that what have bought, Thats the reason why 99% of Insurance policies holders have actually messed up there Insurance by taking Endowment policies which hardly cover them ..

What do you think about that ?

Manish

]]> By: Manish Chauhanhttp://www.jagoinvestor.com/2009/10/mis-selling-by-lic-agent.html#comment-1414 Manish Chauhan Tue, 27 Oct 2009 16:06:35 +0000 http://www.jagoinvestor.com/?p=274#comment-1414 @Apk <br /><br />I think you are correct , We can track him using the policy document number. <br /><br />@Gurdial <br /><br />:)<br /><br />@Anonymous <br /><br />Totally Agree ... the main onus is on investors , LIC agent is not the real culprit .<br /><br />@Bingo <br /><br />That makes sense , agent will not put other agent number on the policy because of monitory interests .<br /><br />@Anu <br /><br />I will put the sample in some weeks .. working on it .<br /><br />@Varoon <br /><br />thanks , I will look at it .<br /><br />@Guru <br /><br />Thanks.. the options look well thought .. Good work <br /><br />Manish @Apk

I think you are correct , We can track him using the policy document number.

@Gurdial

:)

@Anonymous

Totally Agree … the main onus is on investors , LIC agent is not the real culprit .

@Bingo

That makes sense , agent will not put other agent number on the policy because of monitory interests .

@Anu

I will put the sample in some weeks .. working on it .

@Varoon

thanks , I will look at it .

@Guru

Thanks.. the options look well thought .. Good work

Manish

]]> By: subramoneyhttp://www.jagoinvestor.com/2009/10/mis-selling-by-lic-agent.html#comment-1343 subramoney Wed, 14 Oct 2009 04:13:09 +0000 http://www.jagoinvestor.com/?p=274#comment-1343 I went to a shop to buy a washing machine. The shop keeper showed me the motor and the wheels - and said I could also drive it to the office. Then he said it has a cooler which will function like an a/c when I did not use the washing machine, and I could also store things to cool it. Now that I have bought it and brought it home..it does none of these. Can I go to a consumer court? Jago investor please help.They should ban this wash machine company, what do you think? All the salesman's fault is it not? There are such bad people on your site who say I should have done my homework! Am I in school? I went to a shop to buy a washing machine. The shop keeper showed me the motor and the wheels – and said I could also drive it to the office. Then he said it has a cooler which will function like an a/c when I did not use the washing machine, and I could also store things to cool it. Now that I have bought it and brought it home..it does none of these. Can I go to a consumer court? Jago investor please help.They should ban this wash machine company, what do you think? All the salesman's fault is it not? There are such bad people on your site who say I should have done my homework! Am I in school?

]]> By: Guruhttp://www.jagoinvestor.com/2009/10/mis-selling-by-lic-agent.html#comment-1342 Guru Tue, 13 Oct 2009 11:49:55 +0000 http://www.jagoinvestor.com/?p=274#comment-1342 Since I’m aware of the intricacies involved in the surrender of Insurance policies, I have listed down the following options which are available<br /><br />a) Surrender all your 4 policies. If you have paid your premiums for 3 years, you will get about 25– 40% of your money as Surrender value. The thumb rule here is: If the tenure of policy is less and you have paid about 3 years of premium, you get more money as Surrender value. If the tenure is higher (say 20 years) and you have paid about 3 years of premium, then you get less surrender value about 25-30% of your money (believe me, it’s including the bonus!!!)<br /><br />b) Make all your 4 policies as “Paid-up”. For this, you need to give a written communication to the company saying that you are unable to pay premiums from the forthcoming year. Once your policy is made as “Paid-up”, you will have the insurance coverage only for 1 year after the last payment is made. There-after, only the bonuses keep getting accumulate and you get the Sum assured + Bonus as described in the policy document on a pro-rata basis (for the number of years you have paid the premium)<br /><br />c) Catch hold of the Insurance agent (using the agent code mentioned on the policy document) who (Mis)sold you this policy and try to get back the commission amount that he has enjoyed all these years (This money should be sufficient for you to take the best available term insurance for millions of rupees) If he does not return the commission money, then threaten him that you will file a complaint with the IRDA for unfair business practices & ensure that his agency is cancelled. (He cannot become an agent from other companies also). And also file a complaint with IRDA. IRDA takes these sorts of complaints with high priority.<br /><br /><br />You can try out Option b and c.<br />Good Luck! Since I’m aware of the intricacies involved in the surrender of Insurance policies, I have listed down the following options which are available

a) Surrender all your 4 policies. If you have paid your premiums for 3 years, you will get about 25– 40% of your money as Surrender value. The thumb rule here is: If the tenure of policy is less and you have paid about 3 years of premium, you get more money as Surrender value. If the tenure is higher (say 20 years) and you have paid about 3 years of premium, then you get less surrender value about 25-30% of your money (believe me, it’s including the bonus!!!)

b) Make all your 4 policies as “Paid-up”. For this, you need to give a written communication to the company saying that you are unable to pay premiums from the forthcoming year. Once your policy is made as “Paid-up”, you will have the insurance coverage only for 1 year after the last payment is made. There-after, only the bonuses keep getting accumulate and you get the Sum assured + Bonus as described in the policy document on a pro-rata basis (for the number of years you have paid the premium)

c) Catch hold of the Insurance agent (using the agent code mentioned on the policy document) who (Mis)sold you this policy and try to get back the commission amount that he has enjoyed all these years (This money should be sufficient for you to take the best available term insurance for millions of rupees) If he does not return the commission money, then threaten him that you will file a complaint with the IRDA for unfair business practices & ensure that his agency is cancelled. (He cannot become an agent from other companies also). And also file a complaint with IRDA. IRDA takes these sorts of complaints with high priority.

You can try out Option b and c.
Good Luck!

]]>