RAJANISH (BSP) 10 February 2011

NOT READY TO CHANGE FREQUENCY MODE

ONE OF MY CUSTOMER HAD TAKEN ULIP PLAN FROM MAX NEW YORK AND HE WANT TO CHANGE PREMIUM PAYMENT FREQUENCY MODE FROM ANNUAL TO MONTHLY MODE BUT MNYL IS SAYING THAT FOR THAT PARTICULAR PRODUCT ONLY ANNUAL AND SEMI ANNUAL MODE IS AVAILABLE HENCE THEY ARE NOT ABLE CONVERT PREMIUM PAYMENT FREQUENCY MODE FROM ANNUAL MODE.

ANNUAL PREMIUM IS OF RS 12000/- AND TWO IS PREMIUM IS ALREADY PAID UP THIS IS THIRD PREMIUM.

EVEN MY CUSTOMER HAS TOLD MNYL THAT IF THEY ARE NOT ABLE TO CONVERT FREQUENCY THEN HE NOT MAKE FURTHER PREMIUM AND APPROACH INSURANCE OMBUDSMAN, BUT STILL INSURANCE COMPANY ARE NOT READY TO DO SO.

PLEASE SUGGEST WHAT SHOULD HE CAN ABLE TO DO FURTHER IF POSSIBLE THEN PLEASE PROVIDE REGULATION REGARDING PAYMENT OF FREQUENCY

YOU WILL GET FURTHER DETAILS OF POLCY IN ATTACH DOCUMENT

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Kumar Doab (FIN) 10 February 2011

Insurance policy is a contract.Before the policy is issued insurance company supplies brochure and customer can raise queries and seek clarifications.

After the policy is issued within 15 days free loook period customer can return the policy citing reasons and can claim refund of premium paid.

Company can deduct NAV adverse movement/medical test expense if any/stamp duty.

As per the document attatched by you the frequency of payment allwed is : annual/semi annual only.

You may call IRDA,Insurance Ombudsman office and clarify in the Unit Builder (ULIP) plan can company firm up only two annual/semi annual.

And if there s any rule/policy that customer can opt any mode even if the same is not written in brochure or policy document.

If the regulator affirms that customer can you may proceed.

The regulator had announced that now if the customer surrenders policy within lock in period of 5 years the company shall have to refund a certain amount after deductions of dministrative expeneses plus surrender charge.Earlier if a customer would opt to surrender within lock in period, nothing was paid.