Non refund after Policy Cancellation

POSTED BY Sunil Chaudhary ON February 26, 2012 7:53 pm COMMENTS (5)

I have a complaint against Shriram Life Insurance Company.

I had taken a life Insurance policy from Shriram Life Insurance Company in June 2010. My policy details are as under:

Policy no. LN131000073706
Shriram Future Wealth -II plan
Sum assured: INR 250,000
Policy Start date 26 June 2010

However, I was not completely satisfied the policy terms and conditions and applied for cancellation of the policy within the cooling off period of 15 days as stipulated in the plan details and the application for cancellation along with policy documents were handed over at Ajmer branch of Shriram Life Insurance on 14 July 2010.
After numerous calls and visits to the branch office, I was informed that the New Delhi divisional office has spoken to me and I have confirmed them not to cancel the policy. I informed the branch office that I have not spoken to anybody in New Delhi divisional office and I wanted the policy cancelled. After couple of days, I was informed that I did not submit the policy within the period of 15 days. I again informed the branch office that the customer service officer confirmed that the policy is withih the “cooling off ” period at the time of accepting my application for cancellation and other policy documents.
As it can be seen that my policy start date is 26 June 2010 and I had submitted the policy to Branch office on 14 July 2010. As per the policy conditions, If the policyholder is not satisfied with the ‘Terms and conditions’ of the policy, the policy can be returned to the Company within 15 days from the date of receipt of the policy.
It is evident that after starting the policy, it would take atleast 4-5 days for it to be mailed to me and to be received by me. Hence, I had submitted the policy within the cooling off period.

Due to frequent changes in customer service officer in the office, I had to explain the whole situation again and again every time and a new reason for non-refund of policy premium was given to me each time. I never received any official or formal communication from Shriram Life Insurance company for rejecting the policy cancellation application. Further, I never received back the original policy and other documents submitted along with cancellation application.
Subsequently, I was out of India due to employment reasons and could not pursue the matter further. However, I have received notices from the Insurance company for payment of renewal premium and subsequently, notice for lapse of the policy.

I again visited Ajmer branch of Shriram life Insurance in last week of December 2011 and I was assured that I will receive the cheque for refund within 14 days. It ha been more than 3 weeks since the expiry of 14 days and I have not received any refund from the company.

5 replies on this article “Non refund after Policy Cancellation”

  1. Ram says:

    One more thing I forgot to add –

    Ideally, you should be able to claim even interest on your non-refunded money from the date that you requested cancellation till the date that you receive back your money. You can demand them to give you around 12% and they might settle down and give you around 10%.

    I did this with a bank (similar ombudsman process) and I got 10% at the time.

  2. Ram says:

    Sunil,

    To add one important point to what Ashal and Manish said – whatever communication you do with Sriram, do it in writing (physical mail) and use Registered Post (with Ack Due) and also retain and file the receipt of the postal mail.

    It is likely that they will not respond at the first go so when you send them a follow-up mail (again physical mail…registered) ensure that you enclose a photocopy of the previous communication and tell them “please see the attached communication I sent x days ago and you will also be pleased to note the registered post receipt and acknowledgement of the same enclosed herewith”.

    Regards,
    Ram.

    Lastly, enjoy the process. I’m telling you for sure that you will win this (assuming the details you gave are all accurate). But enjoy the process. When someone attempts to cheat you of your hard-earned money…take pleasure when getting back at them :).

  3. Truely speaking Sriram Life insurance is such a small company compared to others that its tough to reach out to top officials and they dont even have presence in twitter and facebook (atleast i was not able to find) . I tried to reach them but in vain.

    The first step is to reach out to their internal griviance redressal cell , see http://www.shriramlife.com/IGMS/loging.html . and then leave your complaint at their contact us page also http://www.shriramlife.com/contactUs.html

    You should really look at filing a complain against them and Insurance ombudsman and really threaten them about it and also do it . I am sure you will win at some point, it will take time , but you might get your money back with penalties.You can go to their office and threaten them to raise this issue in public and newspapers and our forum also . This should do some work ! .

    And last question . Why on earth you went with this company , Who convinced you for this and how he did it ?

    Manish

  4. Dear Sunil Chaudhary, here is the link to check the Ombudsman office address & contact details for your area.

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

    Thanks

    Ashal

  5. Dear Sunil Chaudhary, your case is a clear one example of wrong doings on Insurance Cos’ part. Please lodge a complaint with Insurance Ombudsman of your area.

    Please put all the details in your application to the Insurance ombudsman.

    Thanks

    Ashal

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