Mis selling – Kotak Smart Advantage Plan

POSTED BY shantanu001 ON March 14, 2013 1:24 pm COMMENTS (5)


Hi everyone,

even I have been cheated by an Agent from Kotak Mahindra for some commission. i bought a Kotak Smart Advantage Plan (uin-107l043V01)

I was assured for a return of 135% by the agent on completion of three years. I was quite convinced and invested 50000 per year.

As per him, i was suppose to pay only for 3 years but after completion of 3 years, when i checked with Kotak customercare team, they told me to pay for 15 years term else you will loose your money, you will have to pay surrender charges plus you will only receive (SUM of premium paid/15) from 1st year premium.

I have Paid premium for 4 years.
Out of which my fund value now is 163000 & 1st year premium of 50000 is kept separate.

IF i surrender now then i will have to pay 4% of my fund value = 6520
From 1st year premium, i will loose 36666
So my total charges are going to be 41186 approx.

So i will receive only 170000 & i have paid 200000 so net loss of 30000 for me if i surrender.

I did receive documents from Kotak Mahindra after purchasing the Policy, however the contents of the documents were highly complicated for a normal person to understand and we had to go by what the agent told us. It clearly is a marketing gimmick by Kotak asking the agent to give wrong expectation to the potential customers.
I am loosing a total of 30000 by this deal instead of a 135% return as committed by the false agent

I need expert opinion on this what i need to do now.

5 replies on this article “Mis selling – Kotak Smart Advantage Plan”

  1. Kalpesh Patel says:

    Thats how kotak is making fool to investor , at first you think my first premium is fixed and they will return at end of policy term , but they will not tell you the amount that you get after completing term. That will screw you completely. Sorry to say but its us only who get in in agents mis selling for increasing their benefits and Kotak is also equally responsible for this. Finally they want their commission, increased sell and revenue. Better to cutoff Kotak and make sure your family or friends doesn’t get in such trap..

  2. Dear Shantanu001, if you are fearing your current loss, please stay continue & be ready for a bigger loss later on. So your pick – amputate a finger today or an arm tomorrow.



  3. shantanu001 says:

    I have emailed to “clientservicedesk@kotak.com” and this is how i got a reply… for my above matter.

    Dear Mr. Kulkarni,

    We regret the delay in our response and for the inconvenience caused to you.

    We would like to inform you that the plan chosen by you is Kotak Smart Advantage Plan which gives you exceptional benefits on your first year premium paid. This plan is an intelligent unit-linked plan (ULIP) that is based upon the idea of regular savings and systematic accumulation of wealth in the long term. It offers guaranteed returns coupled with the benefit of flexible life cover and up to 100% allocation of your money, making it best suited for an individuals financial needs.

    The first year premium paid by you is kept reserved for two benefits as given below and therefore not invested in the market.

    1) Fixed Advantage: The fixed advantage benefit is an assured value guaranteed at the end of your 15 years policy term. This benefit is calculated as a percentage of your 1st year premium depending on the policy term chosen, provided your policy is in force and all premiums are paid.

    The percentage of the Fixed Advantage benefit in your policy is 135% of your 1st Year premium.

    2) Dynamic Advantage: Dynamic Advantage benefit is an assured bonus credited to your fund value at the end of every 10th, 15th policy year.
    This benefit is calculated as a percentage of the average value of funds in the three years preceding the benefit allocation, provided your policy is in force and all premiums are paid.

    The percentage of the Dynamic Advantage benefit paid at the end of policy year is as follows:

    10 years – 1.10%
    15 years – 1.35%

    If the policy is surrendered before maturity, the surrender value will not include the first year premium and the above benefits cease.

    Further, the surrender value as on the last business day is Rs. 155768.79 after deducting the surrender charges of 4% of the fund value plus service tax and education cess.

    Your life insurance policy in essence is an instrument meant for long term savings and protection and works best when aligned with long term goals. A long term view regarding your life insurance policy is beneficial because when you stay invested, your investments compound year after year resulting in good returns in the long term while keeping your family protected.

    Pre-mature discontinuation of your life insurance policy is therefore not recommended. It would restrict your returns, increase cost and expose your family to unexpected risks. This defeats the core purpose of buying a life insurance policy.

    By purchasing a life insurance policy you took the first step towards securing your family and ensuring their long term goals. Now, do the right thing by staying invested till the end of your policy term to get the best out of it.

    We urge you to keep paying your premiums and stay invested for the long term to reap the dual benefits of security and savings offered by your Kotak Life Insurance policy.

    For any assistance, you may write to us at clientservicedesk@kotak.com or you can call us on 1800-209-8800 (Toll-free), from 8 am – 10 pm (Monday to Saturday)

    It will be our pleasure to serve you, protect you and be with you…… Assuring you of our best services at all times.

    Think Green, an initiative by Kotak Life Insurance urges you to save paper and help save our environment. Please switch to e-statement instead of physical statement and do your bit for the environment. SMS ‘CHANGE’ to 5676788 from your mobile number registered with us OR just write back to us saying “I would like to receive all communication through electronic mode (email)”

    On receipt of your request, we will henceforth send all communication to your registered Email ID and ensure that you stay updated on your policy through a quick, convenient and green mode.

    Warm Regards,
    Priya Patrao | Client Service Desk| Kotak Mahindra Old Mutual Life Insurance
    Kotak Towers, Building No. 21, Infinity Park, Off Western Express Highway, Goregaon Mulund Link Road, Malad East, Mumbai 400097|
    1800 209 8800 ( Toll Free) |(+9122) 6725 7452 ( Fax) | clientservicedesk@kotak.com (Email)

    Please click on the below link and let us know your feedback by just answering one simple question.

  4. Kotak Support Team says:

    Dear Sir,

    We request you to write to kli.grievance@kotak.com along with policy no. and detailed query for better assistance.

    Kotak Support Team

  5. Accept your losses, get rid of the policy and improve your financial life as advised by Ramesh in the other thread,

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