I took a TATA MahaLife insurance policy twelve years ago. I have paid the premiums in full and I do not have to pay premium any longer as per the terms. The policy will be alive till I become 99. The policy amount is ₹3 lakh. I am 68 now. When I checked with the insurance company I was told that the surrender value would be less than ₹2 lakh. Where is insurance coming to the picture when the insurance company would return only ₹3 lakh of rupees (the money I have already contributed) in the event of my early demise. The company would pay 5% payout and dividend of less than 2% during the life of the Policy. I feel this can't be called insurance when the company do not have any risk. Please advise me suitably so that I can approach IRDA for redressal.
- Lakshmi Srinivasan
You have bought a whole life plan. And it is not a smart way to buy insurance. Most people don't need insurance cover until 99 years. Mostly a person's insurance needs end when she retires. Only some people with outstanding liabilities may need a cover even after their retirement. We only recommend term plans for life insurance cover.
If you insist on filing a complaint, you can file your grievance with IRDA Integrated Grievance Management System(IGMS). Visit the link http://igms.irda.gov.in/ to fill in online form and file a complaint. Provide accurate information and keep your documents in hand while lodging the complaint online.
This article was originally published on September 11, 2015.
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