This is a discussion on selling insurance policy by mis representation of facts within the Life Insurance forums, part of the Insurance category; Reference: Children’s double benefit plan -Policy No. 13246489 by HDFC Standard Life Insurance Company Dear Sir, The above referred policy ...
Reference: Children’s double benefit plan -Policy No. 13246489 by HDFC Standard Life Insurance Company
The above referred policy was sold to me after illustration of the policy by Shri Sachin Handa (Business Development Manager) and Shri Vivek Sharma (Financial Consultant). A copy of the illustration has been sent with my policy . There are certain serious deficiencies in the policy which has been given to me. They are part of the illustration but are not part of the policy. These deficiencies are listed below:
1. “Non guaranteed benefits” have been shown in the illustration (page 2 and page 4), whereas there is no mention of Non guaranteed benefits in the policy document. Policy document only mentions of death benefit, maturity benefit and various bonuses. Therefore, I have been cheated by showing these benefits in illustration whereas none exists in the policy.
2. Under the “Non guaranteed benefits” shown in the illustration, the calculated amount @10% p.a. return shown as “Total Surrender Benefit” is Rs. 43,39,803/-; whereas the amount calculated @ 10% p.a. on investment of Rs.1,34,750/- every year for twenty years, works out to more than Rs. 84 lacs. Therefore, I have been cheated by showing return @10% whereas the return amount shown in the illustration is about half the amount calculated at this rate of interest.
3. On the basis of illustration, I had been told that the total return, including surrender benefit on Maturity, bonuses (reversionary and terminal) and the Non guaranteed benefits, would give me a yield of more than 10%. Whereas, according to the policy document, I am only getting surrender value on maturity and bonuses. Therefore the returns @6% or @10% are of no relevance as far as my policy is concerned.
The page 2 of illustration for Children’s Plan double clearly shows under title “Illustrative benefits on maturity”, that the total maturity benefits are linked to some percentage of assumed investment return (here shown as 6% and 10%), whereas this particular plan is not linked to any such percentages, as is obvious in the policy document. Therefore there is clear mismatch between illustration and policy.
4. The policy sold to me is a traditional policy and not a unit linked policy whereas the illustration shows “assumed investment return”.
5. The policy doesn’t elaborate on the details of “assumed investment” etc. This vital information has not been given either in illustration or policy.
I have been duped into buying this policy by misrepresentation of facts in the illustration whereas they do not exist in the policy, as also hiding important and relevant information in both the documents. More returns have been shown in illustration to lure the customer whereas they do not exist in policy.
I, therefore, request you to direct HDFC Life Insurance company to terminate my policy immediately and return my first premium of Rs 134750/- with interest and damages for mental harassment.