IRDA delay to resolve an escalated complaint

POSTED BY Sudip Saha ON October 10, 2011 2:14 am COMMENTS (10)

I am posting this seeking for your help and guide of forum members.For last six months my family is going through financial crisis and harrasment due to LIC.In December 2007 my mother invested 3.5 lakhs in a ULIP Policy through a agent who is my cousin in single premium mode.But the agent by commiting forgery invested the money in regular premium mode and tactfully captured all the policy bonds.After 3 years locking period we discover the misdeed and it’s already created huge financial loss as the policies become foreclosed and LIC deduct points every year by the name of various charges.We move to LIC to resolve this grievance upto vigilance level but they remain silent.I registered my complaint to igms.irda.gov.in then LIC told us they will resolve the complaint within 15 days as mentioned in the IRDA website. Then LIC E-mail me saying that they will resolve the complaint within 15 days time as mentioned in the IRDA Website and seeking further informathon from us.But when I reached to them to provide further information and material evidances to reveal another act of forgery by the agent who submited false age proof documents as the DOB of each policy bonds appear different.But they suprisingly refuse to take any information and told me this forgery will affect me by penalty of deduction points of my ULIP account as a partner of crime.After a long debate I submit those evidances to them but they resolve 1 complaint out of my 4 complaints within the stipulated time.Hence I fail to avail the chance of ‘cooling off’ they are now unable to help me.After the period of 15 days I escalate the complaint to IRDA for further action. But 3 months have been passed and my complaint statues remain in ‘escalated’ mode and get no response either from IRDA and LIC. I would like to know something to my forum members..
1.what is the procedure to resolve an escalated complaint to IRDA and how many time it will take?
2.Is LIC continuously deduct points from my ULIP account in the name of various charges though the 3 yeas lock in period is over?
3.New guide lines of IRDA regarding ULIP will be applicable to my case?
4.If I Surrendar all the policies to LIC now hence the matter is now under IRDA. Will LIC permit me?
Please help me and Guide me forum members and administators.My mother about to loose all her retirement benefits due to lack of insurance education and mis-selling of ULIP,dishonest Agent and lastly the inaction of IRDA. Guide me.
Thaks

10 replies on this article “IRDA delay to resolve an escalated complaint”

  1. DP says:

    Dear Sudip, please go ahead and lodge a complaint in Ombudsman. You will soon get a date of hearing.

  2. Sudip Saha says:

    My complaint remains in the same escalated mode from july 20th,11. I have spoken several times with IRDA call center & they told me to be Patience and advised me to lodge a complaint to Insurance ombudsman. what can i do now?

  3. vinayak k rr says:

    check what is the amount that ur going to get after maturity or if the sum assured is mroe than 20l then u need to put that directly in consumer court even the obmbusmen employees including the judges are paid the salary from all the insurance compaines..

  4. DP says:

    Dear Sudip, you can lodge multiple complaints with Ombudsman but now a day ombudsman is also little stringent and takes due care before awarding any order in favour of customer or company.

    My suggestions:

    1. Lodge a complaint with Ombudsman and provide all material facts available and also share with them scanned copy of actual proof. Send a mail to grievance cell of LIC with attached copy of actual proofs and tell them that proofs have been forged.

    2. If you are not satisfied with the LIC decision, then you can move to Ombudsman. Later if you are not satisfied with decision of Ombudsman, you can approach IRDA and further to Consumer Court.

    3. You can write a single letter specifying the details of all the policies

    4. Generally, the resolution takes somewhere 15-30 days, as per my experience. If you have a hearing with Ombudsman and decision is awarded in your favour, then insurance company has to obey within 15 days.
    5. You can also represent you case in Ombudsman and nobody knows better than you what you have gone through.

    The above mentioned points are as per my experience.

    Please feel free to write back if you require any support.

    Regards,

    DP

  5. DP says:

    I really hope this might help you…

    http://ncdrc.nic.in/

  6. DP says:

    Dear Sudip, I will second Manish on this. Being a government body, they will move a comparatively slower pace. My advise to you is as follow:

    1.Call upon IRDA helpline number and take details of the person concerned looking for IRDA complaints with LIC. LIC has to revert within stipulated timeframe. Secondly, keep a track of all the mails you are sending and file a complaint with insurance ombudsman as well. I have myself experienced that Ombudsman decisions are generally in the customer’s favour considering the rampant mis-selling happening. Last but not the least if your documents are forged and you have originals with you the agent’s license can be terminated.

    If all the above does not lead to result, file a case in the consumer court against LIC and submit all the facts you have related to forgery. I am sure truth will prevail and you will be given justice….all it requires is a little patience… list of ombudsman is as mentioned…

    http://www.irdaindia.org/ombudsmen/ombudsmenlist_new.htm

    Kindly share more details on “But the agent by commiting forgery invested the money in regular premium mode and tactfully captured all the policy bonds”

    Since you have a 15-day freelook period from the date of receiving of bond….

    1. Sudip Saha says:

      Thank you. As you experienced the redressal procedure of Insurance Ombusdmant your suggestions would be helpful.I would like to share some more information, the agent who is my relative after commencement of the policy delay to return us the original policy bonds. On our insistance he gave us a receipt on his printed office letter pad in his own hand writing mentioning the policy numbers and amount which he invest in..’total ulip fixed deposit’ mode.But he tactfully not singed on the receipt. He gave us the originals after 1 year from the commencement date. Due to lack of insurance knowledge and faith on the agent we didn’t go through the bonds to understand his tricks. I call the IRDA call centre and they told me to lodge a complaint at the Insurance Ombudsment. I want to know some points before go to the ombudsment
      1.IRDA and LIC since july,11 didn’t inform me any progress of my mother’s 2 cases. It those 2 cases the agent tempered with the Date of Birth thoug we gave standard age proof documents(i.e School certificate).When we Spoke to CRM Of Lic on that matter he said that we are getting undue advantages by hiding original DOB in the time commencement and now they would deduct points as penalty. Will that frogery of the agent reveal in the ombudsment? These 2 are eligible to send to the ombudsment as they are still pending to a arbitrator?
      2.LIC resolve my other 2 complaints.The same ULIP Policies which my mother bought from that agent in my name.I am not satisfied with LIC’s decision. Will my all 4 cases including my mother’s eligible to send to the Ombudsment?
      3.How many complaint I should lodge to Ombudsment?
      4.How much time will they take to resolve your complaint?
      5.Should I contact any lawer or expert before move to Ombudsment?
      Please reply soon and thanks again all the members who guide me in this time of hardship.

  7. Sudip

    IRDA and Insurance ombudsman will work at very slow pace , you cant even be sure if they will ever get back to you . Moneylife can highlight your case and get the top officials work faster , but even that i can assure that it will work.

    Better you get out of this product and make sure from next time you dont get anything without learning ..

    Manish

  8. Sudip

    1) As you have experienced it , IRDA is not such a fast org which will help you as you expect . The pace of response is very natural and for further help you can reach to editor@moneylife.in , who might be able to help you .

    2) Yes, those charges will be deducted as long as your policy is in force .

    3) NO

    4) You can surrender the policy if you want .

    Manish

    1. Sudip Saha says:

      Thanks Manish. You said that IRDA’s work pace is quite slow. How long time it will take if you had any idea? What kind of help The mone life group would provide me? Some one suggest me to contact Insurance ombudsment but my case pending duration is 4 month. The current NAV of the said policy is worse now so I had to face huge loss if I surrender the policies now. What is your suggestion I want to know. Thank you again earnestly.

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