Dear Sam,
I retired in June 2010 at the age of 60 years and got about Rs. 10 lakh as my retirement benefits which was my lifelong savings. I contacted a big and highly reputed investment company (Bajaj Capital Private Limited, Baja House, Nehru Place, New Delhi - 110 019) to suggest how to invest this as to get good returns. I told them that I do not get any pension and I am not in tax bracket. I was a layman at that time and I did not have any knowledge of investment schemes.
They sold me following 2 policies in July 2010 saying that I will get very attractive returns on them after 3 years -
1. Kotak Single Invest with a single premium of Rs. 1 lakh
2. Bajaj Allianz Group Unit Gain Policy with a single premium of Rs. 2 lakh
They made me invest the remaining 7 lakh Rupees in 3 ELSS Mutual Funds (3 lakh + 2 lakh + 2 lakh).
I did not get any 80C tax relief as I do not earn anything.
In August 2011, I received my annual Statement of Accounts for the above policies. To my horror, I discovered that Rs. 1 lakh in Kotak single invest had already depleted to Rs. 80 thousand and Rs. 2 lakh in Bajaj Allianz had depleted to Rs. 1.5 Lakh since they had deducted premium allocation charge and mortality charge which were never told to me. Premium allocation charge is a one-time charge and is equal to a hopping 10% of the premium paid. Mortality charge is about Rs. 800/- per month in Kotak Single Invest and about Rs. 1550/- per month in Bajaj Allianz. There are some other minor charges also. Service Tax is extra.
I do not need any insurance as I do not earn anything. If I die, my family, which consists of only my wife, will suffer no financial loss due to my death. I cannot return these policies before three years, i.e., before July 2013. By then, almost all of my 3 lakh Rupees will be lost mainly due to the mortality charge.
I asked the insurance companies to remove the insurance cover on my life and stop deducting mortality charge, but they do not agree. I tried to meet Bajaj Capital employee who sold these policies to me several times but he does not talk to me now. If it was a regular premium policy, I would have immediately stopped paying further premiums to prevent further loss. But they have taken 10 year's premium in just one go. I am badly trapped.
My lifelong saving is being robbed before my eyes and I cannot do anything.
I have learnt it hard way - "Never believe big Insurance Agents and big Insurance Companies". They will sell insurance policies to just anybody and everybody for their own benefit. These people sell policies even for a child in his mother's womb. They sell policies even for a dog. I came to know of a case in which insurance policies worth a crore of Rupees maturity value were sold to a 40-year-old rich unmarried woman who does not have any nominee.
J. K. Agrawal
I retired in June 2010 at the age of 60 years and got about Rs. 10 lakh as my retirement benefits which was my lifelong savings. I contacted a big and highly reputed investment company (Bajaj Capital Private Limited, Baja House, Nehru Place, New Delhi - 110 019) to suggest how to invest this as to get good returns. I told them that I do not get any pension and I am not in tax bracket. I was a layman at that time and I did not have any knowledge of investment schemes.
They sold me following 2 policies in July 2010 saying that I will get very attractive returns on them after 3 years -
1. Kotak Single Invest with a single premium of Rs. 1 lakh
2. Bajaj Allianz Group Unit Gain Policy with a single premium of Rs. 2 lakh
They made me invest the remaining 7 lakh Rupees in 3 ELSS Mutual Funds (3 lakh + 2 lakh + 2 lakh).
I did not get any 80C tax relief as I do not earn anything.
In August 2011, I received my annual Statement of Accounts for the above policies. To my horror, I discovered that Rs. 1 lakh in Kotak single invest had already depleted to Rs. 80 thousand and Rs. 2 lakh in Bajaj Allianz had depleted to Rs. 1.5 Lakh since they had deducted premium allocation charge and mortality charge which were never told to me. Premium allocation charge is a one-time charge and is equal to a hopping 10% of the premium paid. Mortality charge is about Rs. 800/- per month in Kotak Single Invest and about Rs. 1550/- per month in Bajaj Allianz. There are some other minor charges also. Service Tax is extra.
I do not need any insurance as I do not earn anything. If I die, my family, which consists of only my wife, will suffer no financial loss due to my death. I cannot return these policies before three years, i.e., before July 2013. By then, almost all of my 3 lakh Rupees will be lost mainly due to the mortality charge.
I asked the insurance companies to remove the insurance cover on my life and stop deducting mortality charge, but they do not agree. I tried to meet Bajaj Capital employee who sold these policies to me several times but he does not talk to me now. If it was a regular premium policy, I would have immediately stopped paying further premiums to prevent further loss. But they have taken 10 year's premium in just one go. I am badly trapped.
My lifelong saving is being robbed before my eyes and I cannot do anything.
I have learnt it hard way - "Never believe big Insurance Agents and big Insurance Companies". They will sell insurance policies to just anybody and everybody for their own benefit. These people sell policies even for a child in his mother's womb. They sell policies even for a dog. I came to know of a case in which insurance policies worth a crore of Rupees maturity value were sold to a 40-year-old rich unmarried woman who does not have any nominee.
J. K. Agrawal
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