POSTED BY September 28, 2012 11:44 am ONE COMMENTON
My father purchased a ULIP from Bajaj Allianz in February 2007 (Policy #0038885078).
The annual premium was Rs 10000, which had to be paid for 3 years and a lock in period of 5 years.
In Feb 2007 and mar 2008, 2 payments were made accordingly of Rs. 10000 each.
The 3rd premium was missed, in 2009, but was paid in Dec 2010.
In September 2012, we logged into the Bajaj Allianz web site to check the performance of the fund. To our surprise, we found that the total fund value has trickled down to Rs. 12093.94.
An amount of Rs. 11040.98 had been deducted in the name of “Charges“, with no break down whatsoever. And under the head for “Lapse Capital Withdrawal Regular” Rs. 9089.82 had been deducted, but once the 3rd premium was made that same amount had been added to the account again as “Reinstatement Capital Regular“. But at the time of deduction, the NAV was 8.6440 and when it was added back it was 17.0679. So, the number of units present in the fund almost got halved.
I called up the Bajaj Allianz helpline, where the associate explained to me that Mortality Charges @Rs. 100.74 per month, Policy Administration Charges @Rs. 63.82 per month and Service Tax @Rs. @20 per month is being deducted which amounts to the above mentioned “Charges“.
He also said that as the premium had not been paid in 2009, the policy got lapsed and the funds were frozen, hence, the units available at that time were sold @Rs. 8.6440 per unit, and when the third premium was paid, the same amount was utilized to buy units at the prevalent price of Rs. 17.0679 per unit.
The conversation id for the call with the representative is 27934071.
So right now, the total fund value has amounted to Rs. 12093.94 on payment of a premium of Rs. 30000. Plus every year, 22% of the premium is being deducted @22.14%, with no significant development of the fund whatsoever, in addition to allocating only 95% of the paid premium.
I feel defrauded by Bajaj Allianz.
Can anyone please suggest the right course of action here?
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One reply on this article “Poor Asset Handling and Outrageous Charges by Bajaj Allianz”
You can do NOTHING! yes nothing, all that they have done is in perfect accordance with the terms and conditions mentioned in the 25 page or more Policy Document which we never bother to read when we get it and we tend to believe what the agent/adviser told us at the time of selling the plan. The charges are nothing but what the agent got as commission and the company Merrily goes on deducting units as long as the policy is in force, even then try sending emails to the company people, the branch manager, the area manager and every top management email id you can get hold of, a complaint to IRDA should also be done. Hopefully somebody will answer you.
Please also read the latest article by Manish on jago investor about Mis-Selling or Mis-Buying?