POSTED BY February 8, 2014 7:51 pm ONE COMMENTON
I have purchased a Jeevan Saral Endowment policy from LIC of India on 8/3/ 2011 for a life cover Rs 25,00,000.00 (Rs 25 Lakhs only) and survival sum assured of Rs 25,00,000 (Rs 25L) on the assurance that this policy is an excellent investment for my retirement corpus, unmatched by any other plan in the market. I had purchased this plan based on the insurance agent’s advice that I would get Rs 25 L life cover + Rs 25 Sum Assured based on returns calculated @10% and 6%, This policy was also touted as the best policy with a Golden Peacock award.
To service this plan, I have paid monthly premium of Rs 10,208/month, total of Rs 3,67,488/- (Rs10,208*36 months) till date.
My concern is that, I am now led to believe that these claims and projections by LIC are false and are designed to confuse and mislead investors. Endowment policies such as Jeevan Saral do not really return the shown sum assured (realistic returns are around 3.5% )and hence, this investment can be termed as a bad investment with below par returns.
The other more important concern now is, I am in a dilemma to continue sinking my hard earned Rs 10,208 every month in this policy knowing fully well that my money is being wasted on a policy which will not return my investment. If I stop this investment, I loose out on 1 year premium + other expense charge and penalty that LIC may choose to levy on me. Any which way, I stand to loose because of purchasing this policy.
Can I have your suggestion on how I can approach the right authorities in LIC through IRDA to close and settle this policy without me incurring any financial losses for the premia paid? Is there any other route I can choose such as taking this to Consumer Redressal Forum on the grounds of mis-selling policies based on falsified projections? What is IRDA’s stand on Endowment policies?
I would greatly appreciate your response.
It may be a good idea for a few of us who have fallen prey to this scheme to make a legal representation in the court to recover our investment.