[Resolved]  Bajaj Allianz — insurance

Address:

Mumbai City, Maharashtra, 400078

Would like to bring to your notice a case of serious misconduct by bajaj allianz insurance company.

This is regarding the policy no: [protected].

This policy was a bajaj century plus product purchased in 2008 as a life insurance investment. At the time of policy, it was explained that this policy will be exempt under both section 80c and the maturity proceeds will also be tax free.

The sum assured for this policy was 1, 50, 000 and the amount paid as premium is rs 30, 000. Since the premium paid was less than equal to 20% of the sum assured, the policy qualified for exemption under both section 80c and as the policy was purchased before 2012, under section 194 da as well the maturity proceeds would be deemed as tax free.

However, the bajaj allianz executive and their team also asked my family to unnecessarily pay a top-up premium of rs 20, 000. They said that the sum assured for top-up premium is 25, 000 and it will not impact the original policy tax exempt status.

I also paid six overdue premiums of rs 30, 000 each in 2017 as a tax saving exemption. Before paying the premiums, i had asked the bajaj allianz executives specifically whether the policy will qualify for 80c exemption and if the maturity proceeds would be tax free. They affirmed that the policy will qualify for exemption under 80c and that the maturity proceeds would be tax free.

The policy matured in 2018 with a final maturity proceeds of ~rs 3, 36, 000 and the bajaj allianz people have deducted tds (@1%) and also stated that the maturity proceeds will be taxable. They are telling that because you paid a top-up of 20, 000 in the policy in 2008 your total premium exceeds the 20% of sum assured and hence the policy will be taxable. Now, i am liable to pay tax on the entire amount of maturity proceeds

I feel cheated and deceived, as all this while the bajaj allianz executives kept convincing us to purchase this policy showing it as a tax free investment, asking us to pay more premiums and repeatedly kept lying.

If they would have stated this explicitly at the time of paying the top-up in 2008 that the policy status would turn to taxable due to the premium, we would not have paid the premium in the first place. Not only did they hid the fact from my family, they even wrongly stated that premium paid would not impact the tax exemption status.

Further in 2016, when in 2016, i had enquired again and again from the bajaj allianz officers about the taxability, interest charges, they again misled by telling that the policy would be exempt under both section 80c and section 194 d. If they would have told me that maturity proceeds would be taxable why would i invest rs 1, 80, 000 in the policy at that stage itself, i would not have invested in the policy in the first place as i was looking for a tax-exempt investment.

Now, because of all this, i have unnecessarily come under a huge tax liability, which is a huge burden. I have tried to contact them multiple times but they have failed to provide any resolution to this,