Metlife Insurance — False Selling/ No clarity on surrender charges

Address:

Karnataka

My wife purchased a Metlife policy 3 years ago from an agent, who was referred to us by our Bank Manager. The agent and the bank manager told us that the policy term was 3 years and that we could withdraw the entire amount (surrender) without facing any charges after completion of 3 years.
Now when we want to surrender the policy, the fund value is close to 83000 INR (after a partial withdrawal of 25000) from the invested 150000. When we enquired, we found out a few issues:

1. fund allocation fees of 48+ % for the first year, decreased over the years. So of the total 1.5 Lacs we invested, only 1 Lacs was invested. Almost 48000 was deducted as charges. This was not informed to us earlier.

2. We had a 100% ULIP option, and the NAV during purchase was around 18, and now its 28. Yet, the sum invested in this reduced from 74000 to 34000. I dont know how this is possible.

3. we thought we will surrender the policy, and found out they levy 20% surrender charges, which was not informed to us at the time of the sale.

So basically, out of 1.5 lacs invested, the total amount we will get now is about 91000. What is shocking is the manager of Karnataka Bank ( a scheduled bank) recommended and swore by the policy. Apparently Karnataka Bank has a tie-up with Metlife.

Now, the agent who sold us the policy (Bhaskar) is absconding, and when we spoke to the manager of Metlife, he only said this is the company policy. He took no responsibility for the false selling by HIS agent. The bank manager said he was not in charge when we purchased the policy, so who is responsible for the false sell by the agent?? Who will check false selling menace and when will the companies be held responsible for this?


I agree, as consumers we should check all details and make informed investments. But we purchased this policy only because the Bank manager forced us to (return for providing loan??) and we trusted him. How easily these companies cheat people and how easily they get away with it is really shocking.