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Anoop Prasad (Corporate Employee)     19 January 2010

Cheated by Kotac Life insurance company


Hi, All
Because of continuous calls from Kotac Life insurance company I decided to take a policy in which the agent told me that the my phone number is select for a bonus plan where I had to submit 30,000 P.A for three years and after three years I’ll get 175% of my first years premium and assured 13% P.A.  Return on the total amount deposited by me.
After hearing about this plan I decided to go for it and deposited a cheque of Rs. 15,000 to the agent. The cheque was debited in my account on 28-12-2009. I didn’t get any policy bond so far. After contacting to the customer care via email they gave me some details of the policy and then I registered my policy online of Kotac’s website.
There I came to know that the policy they sold me is for 13 years and I’ll have to pay the premium for 13 years. It was shocking to me as I am not able to pay Rs. 30,000 PA for 13 years. Now I wand to withdraw the policy but I didn’t receive any policy bond so far.
Please kindly help how can I withdraw the policy now.
Thanks and Regards
Anoop prasad


 16 Replies

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 )     19 January 2010

Have u filled up the policy application form after reading terms & conditions. ? U might have signed blank application form.

R.R. KRISHNAA (Legal Manager)     19 January 2010

Usually the premium can be received back on surrendering the policy.  Write a letter to kotak that you are surrendering the policy and ask for the refund of the premium paid.  They will deduct some charges on the premium and refund you atleast 70% of the paid premium.

Anoop Prasad (Corporate Employee)     19 January 2010

Thanks for the reply,

I filled up only information regarding me and signed the form. Because there is a common form for all policies and I believed that the agent will complete the remaining formalities. Here I think I have commited the mistake.

Can I compalint to IRDA regarding that?


Anoop Prasad

Ritwick Dave (Lawyer)     19 January 2010

yes ofcourse u shall write a compliant to IRDA. But frankly speaking u have to read all the terms n conditions before signing n also asked all details of that particular policy. u also have opportunity to sue the company

CS Pooja (Company Secretary)     20 January 2010

I had a similar experience wherein i was told that the first year premium paid by me will be doubled and added to my Fund value. But when the agent  actually arrived to see me, I guaged it from the brochures what it all was about. Hence, I requested him to ask his telecallers not to give false information and tarnish the image that Kotak had build in years.

Coming to the problem, as per IRDA rules, as informed by the agent, we can get  back 100% permiun paid by us within 10 days of such payment. And, depending upon the policy, maximum surrender charges imposed would be 50%.

Since the first option cant be exercised in your case, you can go for the second one...

In any case, I suggest you to talk to your agent who sold you such policy....

Vipin Kumar Jain (CA)     06 March 2010

As per my knowledge now one can refused to take policy within 15 days of receipt of Policy bond if he do not want. You mentioned you have not received any policy bond till now. In such case you insist for policy bond and on receipt you can take action.

SANJAY JOIL (LAW STUDENT)     16 March 2010

You can cancel your Policy contract within 15 days from receipt of policy document .It is called "cooling off" as per IRDA.  They will deduct some nominal charges and refund your money.  But remember ... the reason for cancelling  should be one from the "terms and condition".  If you are not agree with any of the term or condition written on the  policy document  you can cancel you policy in colling off  as mentioned above.

Suresh CSLLM (Service)     16 March 2010

Lodge a detailed complain with necessary details at below mentioned address.

Mr. Sudipta Bhattacharya, Sr Assistant Director
Insurance Regulatory and Development Authority                
Parishrama Bhawanam, 5-9-58/B, Basheerbagh,
Hyderabad – 500004.         

Ph. No.: 040-23381100 Extension-235,263 and 239
(040) 66820964/66789768 Extension –251
e-mail id:

1 Like

radha (freelancer)     17 May 2010

You may do the following:

1.Compile all the record e.g Dates on whcih who called you/you called whom/who met you/you met whom. On which day who asked you to register on web site, any SMs received by you or sent by you, any email received by you or sent by you etc.

2. Stop  calling them on phone.

3. Stop registering anything on their website and claim that since you did not receive any policy document, the company agent and company managers and company instead of resolving your girieviances asked you to register for some imaginary number and you shall not be liable for any action since you have not received and   READ the policy document. 

4.If you have not received the policy documents, submit a written letter to the nearest company office stating you have not been delivered any policy document and you are not aware after collecting the payment vide your  cheque number ....... from your account no.......on Dated....... for Rs..... what has been done with the amount. 

5. In the policy document copy of the proposal form filled by you has to be enclosed.

6. Company may claim the policy document was sent and even delivered but you may not settle if the certified copy of the airway bill/POD of the copurier/regd post/speed post is not delivered to you, and if it is false you may state so to the company.

Company shall have to provide this info to you and shall have to provide another copy original/duplicate to you, alongwith the copy of the proposal form signed by you.

Be firm on getting the copy of the proposal form since the name of the agent his/her businees code issued by the company name/code  of the offidser of the company superior to the agent will appear on the form ,and also if you have not filled up the complete form then there shall be two different inks and two different handwritings on the form, and in such a case company has to obtain a written authorisation from you. If your form is filled by the agent then he /she has to declare on the form thaqt the form is filled by him/her . Company has to obtain your signature on another document called PQIS/Benefit illustration as per IRDA rule if your plan is ULIP, and also on your proof of date of birth, address proof, photo ID.

Recall if you signed all these or the company forged your signatures. Company has to provide you a copy of the brochure of the plan opted by you, under receipt by you, and receipt of the cheque issued by you. PQIS/Benefit illustration also mentions some of the details of the plan opted by you e.g policy name ,term of the plan, premium, etc.

Even in case of the Traditional insurance customer should be given brochure and detailed illustration of the plan.

7 The free look period starts after the original policy docs are received by you and is for 15 days.

Once you have received the policy docs, you can surrender it if you do not agree to the terms and conditions, and plan told to you was something else.

8. You can sue the company for misselling.

9. Company can deduct stamp duty, medical charges if any medical tests were conducted , NAV adverse movement if any in case of ULIP plan.

The internal complaint redressal mechanism of the company may solve but shall try to cover their lapses and you may loose time, and the agent and offices of the company shall do their level best to prove you wrong.

Insurance Ombudsman entertains such complaints but a lawyer can not represent you, and they shall decide on the record.

It shall be appropriate to peruse in writing only , to obtain record and it shall be better to file  a complaint in consumer forum, where you shall get releif and compensation

 Henceforth avoid buying in response to phone calls and be careful before you sign on a document.



Dear member:

The position for availing of the facility of returning the policy is over now.  Now the option available to you is to surrender the pollicy or retain it for a minimum period of three years so that you may get the total amount of premium paid.  If you choose to surrender it immediately  I think you may not get any thing. Please see the conditions of the policy.  To get back your initial payment you have to pay the premium of two years more.



radha (freelancer)     23 June 2010

Since you did not receive any policy bond, you may write down the details to the company as given by you and suggested by the members and obtain receipt on the copy of your complaint from the nearest office of the company and you may press the company in writing for informing you whereabouts of your funds collected by them,in writing,since you did not receive any policy bond.You shopuld not accept anything on phone and keep on writing for a reply till you get a reply in writing.

After you receive the policy bond you can surrender it.

It shall be better if you engage a local lawyer.

raj kumar ji (LAW STUDENT )     24 June 2010

ya simply u can surrender the policy within 15 days .the period is start when u recieve the policy or the stamp on the policy bond envelop which the post office dated stamp .

and also u can complaint the agent in irda .his lisense were cancelled .

SANJAY JOIL (LAW STUDENT)     27 August 2010

As I have mentioned earlier in my post ..  COOLING OFF  is   the best way available to you. Contact  the Insurer and tell them to  despatch the policy ..   within  15 of the receipt of the same  .... you can cancel the same under cooling off .  If you opt for   filing a case or consumer court  ......    it will take time .  I am sure... you must have blindly signed the proposal form   and let your agent to fill the same.  You can not  argue on this and will be held responsible for everything  written or declared in the form.     

After cooling off stage  .... if you missed it .... then you will have to pay premia for minimum period  until your policy acquires surrender value.  After  a year,  you can also enquire with them ... whether  reduction of sum assured is possible  , as this can  reduce your premium.



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