[Resolved]  ICICI Prudential - Sane & Protect — Surrender Value Discrepancy

Address:

Bangalore, Karnataka

Hi

I am a holder of ICICI Prudential Life Insurance policy (No[protected]. The policy is called Save 'n' Protect and is a fixed term plan. The policy details are mentioned below.

Policy Term : 25 years
Policy Commencement Date : 07/12/2002
Maturity/Termination Date : 07/12/2027

I have been promptly paying the premium (Rs 17732) for this policy without any delays, every year, during December (when the policy is due) as of today.

I wanted to bring to your notice certain hassles I am facing in trying to get his policy surrendered.

Due to certain financial challenges that I am facing currently, I cannot pay the premium for Dec 2011 and further I feel that I cannot continue to hold this policy. Hence, with the intention of surrendering the policy I approached ICICI Prudential customer care to figure out what would be the amount I would receive on surrendering the policy. I was told that in all I would received a sum of Rs 79000/- only. I have actually paid a total sum of Rs 1,61,111 as premium towards the policy till date since its commencement. So as you can see the amount being paid back to me is extremely low and is not according to the promise made to me as well as the surrender policy mentioned in the policy document (details of which are mentioned below).

As per the policy document, the wordings under "Guaranteed Surrender Value" section is as below:
If premiums are paid for at least three consecutive years, the Policy acquires a Surrender Value which is equal to thirty five of the premiums paid, excluding the premiums paid during the first year of the policy; all extra premiums paid and the premiums paid for the supplementary benefits. The cash value of the guaranteed additions and vested bonuses will also be allowed.The Policy which has acquired a Surrender Value can be surrendered for payment in cash and the surrender shall extinguish all the rights, benefits and interests under the Policy.

Further as per the last notification I received from ICICI Prudential on 02/11/2010
the total guaranteed additions accumulated for my policy is Rs 73,761.49 while the
vested bonus accumulated is Rs 75,104.97. Also, 35% of the premiums paid (excluding the first year and the premiums paid for supplementary benefits) works out to Rs 47759.6 (8 X 35% X 17057).

Hence, as per my calculation (based on surrender policy mentioned in the document), the sum total of the cash amount I should be receiving on surrender is 47759.6+73761.49+75104.97+6 = Rs 1,96,626.06/-

Could you please help me get justice in this regard. I feel extremely helpless and cheated as the company is not sticking to its own wordings mentioned in the policy document. I am feeling that the company is taking me for a ride and taking advantage of my helplessness.

What else can a customer like me rely on - if not the policy document and why should I be losing so heavily in case circumstances force me to surrender the policy?I feel that I should get back at least the amount that I have paid as premium if not any additional benefits.

Thanks
Prashanth