Dear Sir,

I had taken a home loan of 29.86L from ING Vysya on 22nd Sep’2012 (29L home loan plus 86k for policy of five years); In Feb’15 I got balance transfer done to ICICI as I got a good deal. In ING I was primary applicant whereas my wife was secondary applicant. In ICICI my wife became primary applicant and I became secondary applicant.

I had bought two policies of approx Rs. 86000 premium for five years from ICICI Lombard on 22nd Sep’12. Because of change in home loan to ICICI I had placed a request to ICICI Lombard for change in endorsement on 1st Feb’15. They took a month and replied on 1st March 2015 informing us that endorsement is non possible. On 1st March 2015 I placed a request for cancellation of policy. Yesterday on 18th March’15 I have received an email saying that ICICI Lombard is refunding approx Rs. 31,000 against my policies. As the total tenure of my policy was between 22nd Sep’12 and 1st March’15 for approx 2.4 years therefore I was assuming that they will refund half of the premium. As per agreement there was no refund in the 5th year and refund schedule was at 78% for 1st year, 57% for second year and 37% for 3rd year and 18% for 4th year.

My question is do insurance company consider 2.4 or 2.5 or 2.6 years as three years period while refunding premiums. Whereas in the while policy schedule nothing is mentioned on pro-rate basis. Is this refund of Rs. 31000 justified against my premium paid of Rs. 86000 for five years term.

Thanks in advance,