LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

DR. DIMPLE JINDAL (ADV.) (Advocate)     24 August 2012

Cheat by insurance company general manager

hello friends,

i have taken two insurance policies for 50000.00 rs premium per annum from kotak mahindra old mutual funds company three years ago. at the time of policy generating, general manager says that the policy time period is for three years and we can get refund our full money back at the end of third year. but, when three years expires, now the company is saying that the policy term is for fifteen years. and if we surrender the policy now, they will give two installments back only. 

now the manager have left the country india and the agent is saying that she is also not aware of the condition.

please suggest me what can i do?


dimple jindal.


 8 Replies

Adv Rohit Dalmia 9324538481 (Lawyer)     24 August 2012

Dear Dimple, 


You may contact Mr. Mahesh Kumar Dalmia, Mumbai as he is an expert in insurance matters.

You may call him on 9869015722 / 9320015722 to fix an appointment. he shall provide you the best possible solutions for the payment of nominal fees.




You should have acted prudent while signing the insurance proposal  documents. Anyways, you can always approach the Complaiance / Grievance Officer of the Insurance Company. In the event of non satisfaction of your query you may directly apprach the IRDA with your grievance.

Kumar Doab (FIN)     25 August 2012

Learned experts/members have given valuable advice. Kindly follow it.

Insurance is subject matter of solicitation.

Company mentions in its brochure, website, etc to go thru the terms and conditions before concluding the sale.

It is felt that you have taken ULIP.

The agent/manager of the has to provide brochure, PQIS or benefit illustration at a scenario of 6 and 10% return { which is not guaranteed} over a term  or period of policy chosen by customer. This illustration also depicts all charges to be deducted each year from each premium including: admin charges, FMC, rider charges if any, allocation charges etc. The customer has to sign the acceptance on this illustration along with proposal form, and has to provide documents in line with KYC norms and AML guidelines e.g. self attested copies of Pan Card, Id proof, address proof, current photo, and instrument of payment. Competent representative of the company has to marl OSV on each document produced by customer after verifying the copy with originals.

Good companies do not allow alterations on proposal form. On the other hand each alteration is to be countersigned by customer.

As per process of the company and depending upon the premium, officials of the company e.g. Unit Manager like DO of LIC, EA and Dy. Manager, BM, Cluster Manager etc have to contact the customer and have to file a report and confirm that they have enquired and cross checked from customer the details of policy e.g. annual premium, frequency, term, address, documents provided, contact details etc and in some cases have to meet the customer in person.

Now you may find out which document and detail you provided and signed.

 And on which documents and which places you did not sign so as to conclude if your signatures were forged.

You are pointing out mis selling and onus is on you to prove. You can certainly lodge your compliant. IRDA has been off late levying heavy penalties so company shall not agree easily. The question is not just penalty but repercussions.

It is also true that companies have been engaged in mis selling.

You have posted that ‘and if we surrender the policy now, they will give two installments back only. “.

You shall have to fill a surrender form and as per surrender policy, charges shall be deducted and surrender value shall be paid.

The company has not agreed to mis selling.

If mis selling has happened and proved it does not matter if the manager has left the country and agent is not aware.

You need to build a strong case. You may find the attachments useful.

List and detail of decided cases are on IRDA 'website.



Attached File : 973413211 regulation of protection of policy holders interest 3221 gi 2002 eng.pdf, 973413211 surrender charges discontinued policy.pdf, 973413211 life insurance handbook.pdf downloaded: 138 times

Kumar Doab (FIN)     25 August 2012

It is felt that IRDA has delivered decisions in cases of mis selling probably in case of Metlife, in which compnay refunded the entire premium. However the copy of decision is not available. IRDA updates decision under

“Warnings and Penalties” and link is:

You may try to collect the decision from IRDA.

You may find the attachments useful.

Attached File : 113224803 irda faq ulips221007.pdf downloaded: 105 times

DR. DIMPLE JINDAL (ADV.) (Advocate)     26 August 2012

Thanks all of you for your advice. 

yes i have taken ulip plan. i have taken two policies for the premium of 50000.00 each per year.

the general manager have taken signature from us on blank papers on good faith. but she cheated us. 

the policy documents clearly shows the facts that the policy term is fifteen years. but when we receive the policy and talk with our agent for this term condition and again asked him that we will pay only three year installments, he reply us that we didn't worry about that. you will deposit only three installments and at the end of the third year policy term, you can get back your money refund. even they told us that we will not charge any expenses in the policy. now the company is deducting monthly charges in the policy funds value.

i have read the policy in depth now, they have writtened that, our first installment is invested in top-up account and the rest installments will be invested in main account. the funds invested in top-up account not shown any where. because these funds are kept reserve and will be paid 135% at the end of fifteen year (provided that your all premiums are fully paid). they are making foolish to their customers by so refined language (gol mole language). 

also they have writtened in surrender condition that if we want to surrender the policy, we will receive the money after deducting the surrender charges. and we will recieve main account value only because the surrender value is equal to main account value. and the pop -up account and main account both will closed at the same time.

i want to ask here, can a insurance company kept our invested funds reserve in top-up account as the company written and can forfiet our savings by simply saying that we are not continuing the policy or if we have deposit the three installments only and not deposit the full fifteen years installments. this is the basic question to my problem which the company is creating.

general manager have taken the signature on blank papers, agent have misguided and even now saying that he is not aware of the facts fully and he have left the agency. i have taken the policy for three installments only, but the company is now telling to pay fifteen installments to recieve back our third instalment otherwise they will fortiet our first installment. 

please give your advice, what can i do in this complicated case. i have a week case according to the papers, but orally i have given all the assurances by the general manager and agent of the company. even now i have talk to our agent to give his statement as agreed with me for the polices in written format. will this statement help me to fight the case with the company. or there is any other way to fight the case?


dimple jindal.

Kumar Doab (FIN)     26 August 2012

Copy of proposal form signed by you is provided as a part of policy document. If the proposal from is filled by agent, the agent has to write on proposal from that he/she has filled the form and sign. In some companies company's manager also has to sign the form.

You have not replied  whether you signed PQIS and copies of your Pan card, ID and address proof?

Did you filled in and signed your consent for top up a/c? If entire 1st premium is paid towards top up a/c how a policy in which insurance is given can be issued/

There is some confusion.

Try by telling the manager and agent that you shall approach police and apply your resources for person who were your witness.

DR. DIMPLE JINDAL (ADV.) (Advocate)     20 September 2012

now i have made a complaint in the redressal forum again.



                        The Grievance Redressal Officer,

                        Kotak Mahindra Old Mutual Life Insurance Ltd.,

                        8th floor, Godrej Coliseum,

                        Behind Everard Nagar, Sion (east),

                        Mumbai: – 400022.

I “Dimple Jindal” s/o “Krishan Chand Jindal” am a resident of Barnala City. I have taken two insurance policies in June 2009 as follows.

1.      Vincy Singla (policy no. – 01633964) - premium 50000.00 per year payable for three years.

2.      Deepak Jindal (policy no. – 01633992) - premium 50000.00 per year payable for three years.

Regarding these policies, your sales manager “Honey Goyal” and your agent “Shelja Bhatt” and “Arun Bhatt” husband of “Shelja Bhatt” have told us to pay the premium simply 3 years and fourth year we will get refund the money.

The conditions which was told to me by your sales manager and agent as follows:

1.      I have to deposit the premium for 3 years. The term of policy is 3 years.

2.      You will get life cover for 15 years.

3.      There will be no expenses deducted from your fund value in any how case.

4.      I will get refund the money at the end of three year.

 When I receive the policy, I again ask from the agent that the term written in the policy is 15 years. They reply me that this is the timing of insurance cover. We have to pay the premium for 3 years only and we will get life cover for 15 years.

On the completion of three years, I surprised to get a mail from the company to deposit the fourth installment. I reply to the company that I have taken the policy for 3 years, then in spite of refunding my invested money to me, why the company is demanding fourth installment. I also ask about this from the agent. He told me that the sales manager have leave the company and I was also not aware the full facts of the policy. I will discuss the matter with the company and after that I will reply you. 

I have made my complaint to the company on 12th of July 2012, and after making complaint again and again, no resolution is given to me till now.

Now my problem is that, I have planned for the policy term 3 years only according to your agent and sales manager descripttion. You can understand my problem that it is very difficult to continue the policy for 15 years for such big amount. I didn’t know why your sales manager has done this mis-selling on wrong grounds?

Now your company is saying that if I will not deposit the premium for 15 years, then my first installment was forfeited.

Your company is also deducting some charges from the fund value. Which was never told by your sales manager and agent to us?   


Now after that I go to your Chandigarh office for the resolution, they told me that they can sale the policies and cannot help the customers in disputes. For resolution, I have to go in I.R.D.A or consumer court only.


Sir, I request to you again, please look in to the matter seriously and resolve my problem. I will be satisfied if you will convert the policy term in to 3 years as described by your sales manager and agent otherwise cancel my policy. I didn’t want to continue these policies.

Please give me resolution in reasonable time. Already I have made many complaints to you by email from 12th July 2012 onwards. But you have not resolved the problem till now.

Waiting for your reply and hope for the resolution,

Dimple Jindal,

(Husband of – Vincy Singla and Brother of – Deepak Jindal), – b-2/684,

Near old telephone exchange,


Email –;

Mobile - +919872578325; +919876130474


Cc: Kotak Mahindra Old Mutual Life Insurance Ltd. (Branch Office – Chandigarh).

Cc: Shelja Bhatt (Agent of Company). 

A copy of email is also send to all concerned persons.

Kumar Doab (FIN)     20 September 2012

You have posted that:

"I will be satisfied if you will convert the policy term in to 3 years as described by your sales manager and agent otherwise cancel my policy. I didn’t want to continue these policies."

Yu have not stated that company should accept misselling refund entire premium paid by you with interest and take penultimate action on staff for misselling.

If the policy is cancelled company shall levy surrender charges as per contract and terms in policy.

You need to establish that there was misselling. IRDA has taken some strong decisions too.

One in case of Metlife is enclosed.

Attached File : 276910342 irda decision on metlife.doc, 276910342 irda soft on insurance companies flouting norms.doc downloaded: 119 times

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register