[Resolved]  Bajaj Allianz — Hidden charges in sarva shakti suraksha policy

Address:

Pune, Maharashtra

Hi,

I have taken bajaj allianz sarva shakthi suraksha policy through citibank in the year 2013 and have opted to pay the monthly premium of 1500 rs. While the representatives explained about the policy, they said for a monthly premium of 1500 rs, the sum insured is 720000. Also they said at the end of 10 years, there will be good returns.

When asked what if i need to surrender this policy in the middle, they advised that if you surrender this policy within 4 years, then there will be some penalty deducted from the total principal amount you paid and the rest will be credited to you. He no where mentioned about the administration charges.

As i was ok with the policy, i went ahead and signed for this policy, which turned out to be a big mistake.

Now coming to give complete details about the policy, there are some hidden charges which they call it as scheme administration fee. For first year they will be deducting 25% of the total principal you pay as scheme administration fee. Then in subsequent years 6% of the net premium paid will be deducted. I was damn shocked to see this. Actually they have provided all this details in the insurance certificate which we will be getting via post after signing up for this policy. If i had seen this immediately upon receiving the insurance certificate i could have saved my money. My bad!

As i paid for more that 3 years, and not wanting to waste my money anymore, i immediately contacted the customer care and asked about the surrender value i will be getting upon surrendering the policy. As expected, i lost 4500+1080+1080 for first, second and third year respectively. The total surrender value i got is 5900 rs less than what i paid in total. Thanks to some returns through which i got some mere 800 rupees.

I couldn't argue much with the customer care representative as it turned out to be completely my mistake for not reading the insurance certificate and to trust the representatives. I immediately asked the process to surrender this policy and came to know that a penalty of rs 540 (3% of first year net premium) will be deducted as 4 years was not completed. Forgetting about the 540 rs, i produced all the necessary documents in the bajaj allianz office and successfully surrendered the policy with the loss of 5900 rs.

This will be the case for everyone who has undertaken this policy. Worst thing is when i asked the customer care whether the surrender value will be more than the total paid amount if i continue to pay for 10 years, the answer was, "it may be more or it may be equal or it may be less". This is the statement which should have been communicated while taking the policy. But alas, no. This was not at all communicated to anyone.

So guys, save your money as soon as possible.
Note: the penalty charges for surrendering the policy is high in first year and gradually decreases in four years.