Jun 09, 2013 09:19 PM
17197 Views
*This is with reference to policy number 114053399 Jeevan Chaya Plan 103, in the name of Shyam Sachdev.
I wish to bring to your notice that at the time of signing up the policy, LIC agent Mr.Prabhat Kumar of branch office 31A had given me a break up/summary details/quotation for the policy and had assured me that the figures/details given by him on 21/03/2006 were absolutely accurate. The bonus rate quoted/given by him per 1000 sum assured on Endowment type plans was @ 55, and he had calculated the entire bonus sum with the average figure @ 55 for the entire policy term of 21 years.
Now to my utter dismay and shock I have come to know that since the commencement of this policy the bonus rate per 1000 sum assured has been paid @ 48. There is a discrepancy of Rs 7 in the bonus rate which translates into a shortfall of 3500 per year. This would result in a shortfall of Rs. 73500 (seventy three thousand five hundred only) over the full term of the policy till maturity.
I am sure that Mr.Prabhat Kumar was fully aware that the rate of bonus would be 48 before hand. I find this unprofessional and unethical and certainly not the most effective way to increase client interest in financial products, specifchandru021y risk based products like life insurance and long term care.
I informed Mr. Bhagwan Singh, the branch manager of branch office 31A vide my email dated 18/03/2013 about this discrepancy. Having not received any response from him to my email, I called him up personally and spoke with him regarding this matter. He informed me that the matter was being investigated and that the department would inform me about the same. It was shocking and disappointing to hear from him that his agent Mr. Prabhat Kumar could not resort to unethical methods to get customers to sign life insurance policies, and enhance his commission payout, because he was one of the so called 'star agent' who had contributed greatly to LIC's revenues.
On 26/03/2013 I received an acknowledgement to my complaint reference number 1213107392 from the Grievance Redressal Officer of the Branch office/Zonal office stating that the complaint would be resolved within 15 days.
On 28/03/2013 I received a reply that the complaint had been redressed stating that “the bonus rates are declared every year by our corporate office. These rates cannot be predicted in advance. Inconvenience is regretted”
I find this resolution very contradictory. If the bonus rates cannot be predicted in advance then the LIC agent has no business to predict the bonus rate for a period of 21 years in the summary/quotation and mislead people and give false information to them? This means that his real intention is to only sell insurance policies and enhance his commission payout at the financial cost of the customers. I find this unacceptable.
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