THE IRRESPONSIBLE LOT AT LIC OF INDIA,
THE WHITE ELEPHANT
I was an insurer with LIC of India since 1973, obtained several number of policies (there was no alternative till recently!), but I am not exaggerating when I say, never under any policy I have received the maturity proceeds/money back on its due date without fuss or going to the extreme with threatening them with consumer's forum or something!
My last policy with them was obtained in 2009, under an annuity policy, the amount to be invested in "balanced fund", to receive a monthly pension from the date of "vesting". I have paid the yearly premiums on or before due date for the next four years also, the last being in 2013. The policy vested in 2014, from when I had to receive the pension amount monthly.
But 1. They changed the annuity rules during the currency of the policy that annuity is payable only if the fund value on maturity is more than Rs.1,00,000/-, without informing anyone.
2. They told the maturity amount only is payable on due date fully, if fund value is less. They did not, even send me the discharge form one month before due date, as usually done, and after several mails to them and personal phone calls to the branch manager did they send me one, after a month after due date! (The branch is located hardly 10 K.M. from our place).
3. After keeping 5,000/- for 5 years, 10,000/- for 4 years, 15,000 for 3 years, 20,000 for 2 years, 25,000 for 1 year in their fund, they have sent me a return of a meager Rs.729 + my investment of Rs.25,000/-!!! (If I had kept the amount in my own Savings Bank account with my Bank, I would have received a lot more, in interest! and being an ex-staff member, I would have received a lot-ter more!!
I expressed to them my doubts about the Management of the Fund by them and asked them to send me a Statement of my policy account for the period from Start of the Policy till its maturity. They have sent me the following, by attaching to their mail--you can see from the Statement that my investment of Rs.5,000, every year, is not reflected anywhere in it but they went on debiting their "Charges"of whopping amounts and never credited any dividend/benefit in the account!
(If anybody can decipher & justify the figures shown in this statement, I would not hesitate to present them with half of my Kingdom--if ever I form it; and marry my princess daughter to him--if ever I can beget one in the future--as reward!)
When I questioned them, they simply modified the statement, manually as admitted by them, correcting the amount paid by me every year to Rs.5,000 (instead of Rs.10,000 shown by them earlier) and keeping all the other figures "in tact", again justifying their claim that the maturity amount is calculated properly!
I have waited almost 1 full year, during which I have mailed even their head office, but no plausible reply is received from them till now, even after I have informed them that "I will be going public" with the facts!
See how thick skinned are they!!!!!