[Resolved]  Aviva Life Insurance — REFUSAL TO PAY FULL MATURITY VALUE

Address:

Chandigarh, Chandigarh

Aviva Life Insurance Pension Policy no: PPG 1132823

Commencement Date: 20/12/2004

Date of Maturity: 20/12/2009

Maturity Amount: Rs. 62460

Issue: Aviva Life Insurance company refused to pay back the maturity amount in full stating that it was informed to you in terms and condition. (I have proofs of it i.e.all the written communication with the company)

Action taken by me till date: Finally receiving no satisfactory answer from the company I approached the insurance ombudsman office in Chandigarh and filed the complaint on 12/03/2010; however, due to long list of pending cases and unavailability of judge the case is still awaiting its hearing. It is heights of patience from my end, so finally I am filing a consumer complaint. The details of the case have been described in the complaint sent to insurance ombudsman. I am copy pasting the matter of it below with hope to get some resolution from the forum.

Regards,

Jai Parkash
[protected]
[protected]




To,

The Insurance Ombudsman,
Chandigarh.

Subject: Complaint against Aviva Life Insurance Company regarding refusal of full refund against fully matured pension policy. Policy no: PPG 1132823.

Dear Sir,
I bought an insurance policy from Aviva Life Insurance Company 5 years back. It was a pension plan and now the policy is fully matured. The total premium paid by me to the insurance company in these 5 years is Rs 55,256. The total maturity amount as informed to me by the company is Rs 62,460, however, at the time of purchase I was assured by their agent that the maturity amount would be at least Rs 80,000 or higher. This is not the only thing about which I was mis-informed by their agent. It came as a shock to me when I approached the company for withdrawal and I was told that I can only withdraw 1/3rd of maturity amount as cash and rest 2/3rds has to be invested in an annuity plan (which can be of any insurance company that I choose). At the time of purchase I was presented with a very flowery picture about the returns and benefits that I will gain by investing in this company. Now I realize that I was fooled by the company for their own benefits and profits. Insurance is meant to be a sacred investment to reduce the risk of people who share a common risk and insurance company is a facilitator. They deduct their administration charges from the premium paid by us for providing this facilitation. But here the focus seems to be shifted from the benefit of community to benefit/profits of Private insurance companies. I feel that the decision for Indian Government to allow private insurance companies is proving disaster for people like me.
I was shown such flowery benefits and returns by the company that I took money on debt to pay the premiums. I was so convinced by the company’s assurances that I did not mind taking money on debt as I was expecting a hefty return on investment. First shock came when I realized that the returns are lower than the Debt+Interest. It was hard for me to digest it and company gave a clarification these were market based returns. When I asked them about the initial assurance of Rs 80,000 or higher, they simply said we do not give any such assurances and it is clearly stated in our terms and conditions. Then I thought that I should pay back my debtors and accept whatever returns I have got, as I assured them to pay it after 5 years. Then came the second shock that I had no right to withdraw my own maturity money from the company. I had been once again fooled by the company’s terms and conditions. I could not ask my debtors to wait any longer, so I had no other option to ask my son to withdraw money from his credit card account. He withdrew the money and I settled my debtors. The interest charged on his credit card is approximately 40% per annum. I approached Aviva life insurance several times and also submitted written complains to the company for full refund. I received a generalized reply from the company stating that it is mentioned in your terms and conditions that you cannot fully withdraw the maturity amount.
As it is a big financial need to me and my family, the company is harassing me at this point in my old age. I am going through such a financial crunch that I might give in to this mental pressure someday. I believe that I should be paid back my full maturity amount, as it is my own money. Company has already deducted its administration charges and has not fulfilled its promises regarding fund growth. Then I don’t know what entitles them to impose their decision on maturity money which is purely mine. I guess they should also start mentioning in the so called “Terms & Conditions” that “You should forget that this money belongs to you. By signing this insurance contract, you give right to the insurance company to harass you at their own will and use your money for their profits. Do not expect that you will receive your money back, because company has some long term profit plans. The company will re-invest your money for their profit and will not give it to you in any case. Not even in the case that you die of poverty. You should only expect a stupid annuity return which would be lesser that the returns promised to senior citizens by the government. One’s family should never expect any returns as we hardly give any returns to the policy holders and their families stand nowhere in our profit picture.”
If you compare the returns of their or any other annuity plan, I am better off getting a higher interest rate if I put my money in a Senior Citizen account of any bank. Moreover, if I deposit money in the bank, I can withdraw money in any emergency or medical circumstance which is not the case with annuity. I bought this policy thinking that it will help me in my old age; however, this has become a financial obligation where I have to pay higher interest rate to my debtors and being offered a lower return than what I am entitled to being a senior citizen. I would like to ask the insurance company “Who the hell are they to take decision on investment of my money? They were entitled to the administration charges which they have received in past 5 years. Now stop giving me . Give me my money and keep the for themselves as they are already full of it.”
If I do not get a quick payback of my complete maturity amount, I might take a fatal action which might be a suicide and the company (Aviva Life Insurance Company) should be held responsible for it. I expect a quick resolution as day by day the debtor’s pressure is surmounting on me and someday it will surpass my tolerance limits.
I believe Insurance Ombudsman has enough powers to bring justice to this poor old man.
Waiting for a quick resolution.

Thanks & Regards,

Jai Parkash
s/o Sh. Jaswant Rai

Correspondence Address:

House No. 43, Lajpat Nagar, Village Bishanpura, Zirakpur - 140603