In march 2007, I made an investment with Aviva in a growth fund (in hyderabad). The sales agent assured me that I need to make only two annual payments of 30,000 INR each year and then need not make any further payments.

Now when I intent to surrender the policy and withdraw my balance, they informed me that due to non-payment in year 3, they have put a penalty of 74% on my balance amount, and my current balance is just 12,000 INR.

This penalty is unjustifiable. I can understand a 10% penalty to cover their charges, but 74% is just theft.
Please help.