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Find a Complaint:
Foreclosure of Kotak Mutual Life insurance policy
Feb
10
2011
I had taken a Kotak Mahindra Life Insurance Policy No. 00509503 from Pune, Branch, on 1.11.2006. Yearly Premium was Rs 50000/- to be paid quarterly Rs 12,400/-, for a term of 3 years(Total 12 premiums). I had paid 6 Premiums regularly totalling Rs 74,400/- , after which due to financial problems I could not pay the remaining premiums. On visiting Kotak Mahindra Life insurance branch, Pune, on 30th October, 2010, I was told that the policy has been foreclosed on 30th April 2010, so nothing is payable to me. This was a rude shock to me. During the last 2 years, neither I received any letter to my postal address nor any email from them regarding the foreclosure of the policy. Frustrated I contacted their Grievance Officer, and the Officer too confirmed that nothing is payable to me. The authorities have been very rude to my complaint and I have not even received a reply to my complaint.
For your information, I quote below a clause from their own policy booklet.
” If the policy is not revived within the aforesaid perod of 2 years the policy shall cease and surrender value if any, shall be paid after end of said period or on the expiry of third policy anniversary, whichever is later”.
As per the terms and conditions of the policy contract and as stipulated by the insurance regulatory and development Authority vide circular No.032/IRDA/Act/Dec-2005 21st December 2005, if the policy is not revived within the minimum revival period as mentioned in the policy contract, the policy will be terminated at the end of the revival period and surrender value if any will be payable at the end of the revival period or on completion of 3 policy years which ever is later.
Going by the above clause, they are bound to pay my money after deducting their administrative and other charges.
I would be grateful if you kindly look into it and help me get my money back at the earliest.
Thanks
Prabhat
Reply #2
Dear InsuranceExpertsTeam,
Thanks for your reply! This is a SEPARATE complaint. I know the gentleman who has written that complaint and I was the one who suggested him to come to this website and register his complaint. But we all Indians believe in plagiarism!! I saw that Shiahb copied the entire contents from my complaint ( Even the spelling mistake and font) and just adjusted the personal details like amount and policy no etc!!! He ideally should have written his complaint but then who wants to waste time in writing when we have a content ready!
Thanks to the gentleman that my complaint isn’t addressed as of now!
Anyways, please see that this is a separate complaint and needs to be addressed!!
Thank you
Prabhat
Reply #3
Thanks for the clarification Prabhat. A copy of your complaint has been forwarded to the respective dept. of Kotak Mahindra Old Mutual Life Insurance. They shall be in touch with you shortly.
Reply #4
Thanks InsuranceExpertsTeam for your answer! Just to let you know, I have also tried sending my complaint to the Kotak Grievance cell officers who also turned down my complaint! They did not even reply to the emails, I had to call continuously for days to get a reply on my complaint.
I am hoping something can work out here!
Thanks
Prabhat
Reply #5
hello team,
do we have any updates on this complaint? I havent been contacted by anyone from Kotak so far? Has this gone unheard?
Please contact asap!!
-prabhat
Reply #6
It’s really strange to hear that Prabhat. By this time, we expected the company to respond to your complaint. We shall suggest you to go ahead and file your complaint with the Insurance Ombudsman. Very shortly, we shall be posting an article on working and other details of Insurance Ombudsman in India. We have received a few requests for that. Do keep us updated on the developments in your case.
Reply #7
Exactly! I have contacted t he ombudsman in Mumbai for the same. And Guess what! I dont get a reply from him either! Horrible service around. if ombudsman does not help in this, who do I go to? Supreme Court of India? See my emails below to ombudsman!
———- Forwarded message ———-
From: Prabhat Handoo
Date: Wed, Mar 9, 2011 at 11:54 AM
Subject: Re: Kotak Mahindra Life Insurance Policy No: 00509503
To: IRDA Complaints , Ombudsmanmumbai
Hello!
Can anyone please update me on the status of this complaint? I havent heard from you in months!!
Please update asap!!
-Prabhat
On Mon, Feb 21, 2011 at 2:01 PM, Prabhat Handoo wrote:
Any update on this? When can I expect a reply from Ombudsmanmumbai on this? Or should IRDA gimmea complaint number for the same?
Thanks
Prabhat
On Tue, Feb 15, 2011 at 4:00 PM, Prabhat Handoo wrote:
Hello IRDA,
Can you please tell me a time span that i can wait for an update on this? I would like to know the status on my complaint. I have already sent the information that I was requested.
Thanks
Prabhat
On Thu, Feb 10, 2011 at 12:27 PM, IRDA Complaints wrote:
Dear Sir/Madam,
You have taken up the matter to the office of insurance ombudsmen. We wish to inform you that IRDA does not intervene in the process of hearing by hon’ble insurance ombudsmen. So you are advised to bear with us till an award is delivered by Ombudsman.
Regards,
Consumer Affairs Department
IRDA
Basheerbagh
Hyderabad
From: Prabhat Handoo [mailto:prabhathandoo@gmail.com]
Sent: Monday, February 07, 2011 12:35 PM
To: Ombudsmanmumbai
Cc: complaints@irda.gov.in
Subject: Re: Kotak Mahindra Life Insurance Policy No: 00509503
My address is
b11/6 Meera nagar
Lane no 7, Koregaon park
Pune-7
I have sent hard copies of letter requesting for the complaint from the Kotak bank. But never heard from them.
Can you please provide me a compliant no registered with the IRDA?
Thanks
Prabhat
On Mon, Jan 24, 2011 at 3:58 PM, Ombudsmanmumbai wrote:
Ref:Omb/Mum/Misc/ 1075/10-11
Please send your complaint in writing duly signed by you giving your full address. Please also send the copies of letters sent to/received from the company and its grievance cell.
Asst.Secy
—– Original Message —–
From: Prabhat Handoo
To: ombudsmanmumbai@gmail.com ; complaints@irda.gov.in
Sent: Wednesday, January 05, 2011 12:15 PM
Subject: Kotak Mahindra Life Insurance Policy No: 00509503
Shri S Viswanathan
Insurance Ombudsman,
Office of the Insurance Ombudsman,
3rd Floor, Jeevan Seva Annexe,
S.V. Road, Santacruz(W),
MUMBAI-400 054.
Tel : 022-26106928
Fax : 022-26106052
Email ombudsmanmumbai@gmail.com
Cc:
Mr. T Venkateswara Rao, Deputy Director
Insurance Regulatory and Development Authority
Consumer Affairs Department
United India Tower, 9th floor, 3-5-817/818,
Basheerbagh, Hyderabad – 500 029.
e-mail id: complaints@irda.gov.in
Sub: Complaint against Kotak Mahindra Life Insurance Co Sohrab Hall Pune with respect to the Foreclosure of Policy No: 00509503
Sir,
Kindly permit me to forward the following complaint to you both. I am sure, you will give due consideration to it.
I had taken a Kotak Mahindra Life Insurance Policy No. 00509503 from Pune, Branch, on 1.11.2006. Yearly Premium was Rs 50000/- to be paid quarterly Rs 12,400/-, for a term of 3 years(Total 12 premiums). I had paid 6 Premiums regularly totalling Rs 74,400/- , after which due to financial problems I could not pay the remaining premiums. On visiting Kotak Mahindra Life insurance branch, Pune, on 30th October, 2010, I was told that the policy has been foreclosed on 30th April 2010, so nothing is payable to me. This was a rude shock to me. During the last 2 years, neither I received any letter to my postal address nor any email from them regarding the foreclosure of the policy. Frustrated I contacted their Grievance Officer, and the Officer too confirmed that nothing is payable to me. The authorities have been very rude to my complaint and I have not even received a reply to my complaint.
For your information, I quote below a clause from their own policy booklet.
” If the policy is not revived within the aforesaid perod of 2 years the policy shall cease and surrender value if any, shall be paid after end of said period or on the expiry of third policy anniversary, whichever is later”.
As per the terms and conditions of the policy contract and as stipulated by the insurance regulatory and development Authority vide circular No.032/IRDA/Act/Dec-2005 21st December 2005, if the policy is not revived within the minimum revival period as mentioned in the policy contract, the policy will be terminated at the end of the revival period and surrender value if any will be payable at the end of the revival period or on completion of 3 policy years which ever is later.
Going by the above clause, they are bound to pay my money after deducting their administrative and other charges.
I would be grateful if you kindly look into it and help me get my money back at the earliest.
With best regards,
–
Thanks
Prabhat Handoo
Reply #8
Do you guys have email address of ombudsman? i think i have the correct one? maybe he has forgot the password!!
Reply #9
Dear Prabhat,
We went through your complete conversation with the Insurance Ombudsman office, Mumbai. If we assume it rightly, all your conversations with Kotak has been via emails only. Right?
As per IRDA, you should make a complaint to Insurance Ombudsman office in writing if your insurance co. has either rejected the complaint or you have not received any reply within a period of one month; or you are is not satisfied with the reply of the insurer.
After an internal discussion among our team of experts, this is what our suggestion is. Since we are planning to move the complaint to Insurance Ombudsman office, you should write a complaint in writing to Kotak and if they don’t reply within a month, the regulator permits you to file the complaint with Insurance Ombudsman office. Also ask for the fund value statement from the insurance co.
In the meantime, we shall also confirm with IRDA officials and Insurance Ombudsman office on whether print-outs of email conversations with the insurance co. can be used for filing a complaint with Insurance Ombudsman office.
Reply #10
Thanks for your reply.
I had filed a written complaint with Kotak Grieviance cell to which they never replied. When I called them, someone told me on the phone that my complaint was rejected by the greievience officers. This has happened 2 months back.
I can fax or mail the copy of these written complaints to Ombudsman office If you could give me the address.
My all conversations with Ombudsman and IRDA have happened over email.
Thanks
Prabhat
Reply #11
Ok. We are in the process of confirming whether print-outs of the conversations with the insurance co. can be sent and are acceptable to the Insurance Ombudsman office. We shall keep you updated on this. In the meantime, kindly arrange to get a fund statement for your ULIP policy. We would like to see the movement of units so that we can put forth our case strongly. If possible, also mail a hard copy of your complaint to Kotak Life Insurance. If they reply, well and good; if not, then also it’s fine. Anyways, we are taking the case to Insurance Ombudsman office.
So, Prabhat, how was your experience with our forum? We would really like to have a fair and honest feedback from you to further strengthen this forum and make it more robust.
Reply #12
Dear Prabhat,
We have confirmed the same. Print-outs of your conversation with the insurance co. can be used while filing the complaint with the insurance ombudsman office.
Do keep us updated on your case. We shall be happy to share it with our readers in a special section.
Reply #13
Hello InsuranceExpertsTeam,
Apologies for a delayed reply, I was out of India and couldnt work on this. So I have taken print outs of the email conversation that I had with Kotak and the Insurance ombudsman. Also sent the copies of the written complaint that was sent to Kotak. All this has been dispatched to the Ombudsman office in Mumbai. I will keep the thread posted about what happens later. Thanks for all your help.
Reply #14
Dear InsuranceExpertsTeam,
I have sent the documents to the Insurance ombudsman Mumbai. They would not reply to my emails at all. Can you suggest what can I do in interim about this? How can I take this case ahead?
Thanks
Prabhat
Reply #15
Did you try re-sending a written application regarding the delay in the reply from Insurance Ombudsman?
Reply #16
Do you mean if I sent the same application to the Ombudsman? If yes, then yes I have already sent them 3 separate emails on ombudsmanmumbai@gmail.com But havent heard from them as yet. I had couriered the photocopy of the written complaints sent to Kotak but they havent confirmed the acceptance of the same.
Reply #17
We’re really sorry to hear that you haven’t heard from Insurance Ombudsman office till now. When did you submitted your complaint to them?
IRDA has recently also taken up its grievance redressal mechanism very seriously. Request you to visit this:
http://www.igms.irda.gov.in/
Most of the insurance companies are integrating this mechanism with their grievance redressal mechanism and this shall ensure that complaints are addressed quickly and effectively.
Reply #18
I will file a complaint on that website too. I had sent the complaint to them almost a month back. I really dont know how to get my money back now. Any suggestions will be welcomed.
Reply #19
Dear Prabhat,
Keep following-up with your insurance co. and register the complaint on the link we provided earlier. We believe it will take time, but you will get back your money lastly…
Reply #20
Well, I have registered the complaint with the Kotak Tech Support as well. This is the reply that I get from them:
From: Client Service Desk (Central Ops, KLI)
Date: Wed, Jul 27, 2011 at 7:31 PM
Subject: RE: Foreclosure of Kotak Mahindra policy No. 00509503
To: prabhathandoo@gmail.com
Dear Mr. Handoo,
This is in reference to your communication.
We would like to inform you that the policy has been foreclosed and we are unable to revive the same.
We have already sent our communication previously as well (letter attached for reference).
For further queries please feel free to call us on 1800 209 8800. Monday to Saturday between 8 AM – 10 PM.
Warm Regards,
Jarvis Henriques| Client Service Desk | Kotak Mahindra Old Mutual Life Insurance Ltd.
_________________________________________________________
And now the ombudsman wouldnt reply to emails. Do you know a number that I can reach them at? This is so irritating.
I have also registered the complaint at the link you provided.
-Prabhat
Reply #21
Hello Sirs,
I have not heard from the IRDA/Ombudsman on this issue at all. They dont even reply to my emails anymore. What do you suggest now? Its been more than 2 months that I have sent the documents that they asked for. I think I should get on a hunger strike to get my money back now.
Please suggest!
-Prabhat
Reply #22
Another thing. I Posted my complaint on the website http://www.igms.irda.gov.in which you had mentioned. Its been more than a month now and it still shows in the New state. No one has worked on it at all. Do these govt offices even work?
Reply #23
Dear Prabhat,
We’re really amazed to see that your complaint is still unaddressed. Typically, IRDA addresses the complaints in a span of a week or two. The same has been confirmed by many policyholders on this forum.
We’re forwarding your complaint to the senior management of your insurance company.
Keep us posted on the developments.
Reply #24
Dear InsuranceExperts,
Guess what happened today, like how ever govt of India office works,After 3 months of registering the complain, I received a reply from the Honorable Ombudsman. Here it goes, without any surprises:
———- Forwarded message ———-
From: ombudsmanmumbai
Date: Tue, Sep 6, 2011 at 3:33 PM
Subject: Re: Fw: Kotak Mahindra Life Insurance Policy No: 00509503
To: Prabhat Handoo
Re:Omb/Mum/LI-1075(10-11)
This has refererence to your above email. In this connection we have to state that the matter was put up before the Hon.Ombudsman. It has been decided to reject the complaint as it is not entertainable. Therefore the same is treated as closed at this forum.
However, you are free to approach any other suitable forum such as Consumer Forum, Civil Court etc, you deem fit.
Asst.Secretary.
______________________________________________________
So they have rejected my complaint as it cant be entertained. What was I supposed to do? Send Rakhi Sawant along with the complaint to make it entertaining or what?
Can you please suggest what should I be doing next? Or should I get on a hunger strike or contact Anna Hazzare?
-Prabhat
Reply #25
Dear Prabhat,
The Insurance Ombudsman office didn’t even mention the reason for rejection of your complaint. In the meantime, we have also received the reply from Kotak’s concerned department to whom we escalated your case. It mentions the reply that Kotak sent to you on April 30, 2010.
Reply #26
Okay. So does it mean that I cant get my money back. This is a reply that I got from Kotak helpdesk as well:
_____________________________________________________________
Dear Mr. Handoo,
This is with reference to your E mail
We would like to inform you that, as per the terms and conditions of the policy contract and as stipulated by the insurance regulatory and development Authority vide Circular no.032/IRDA/Act/dec-2005, dated 21st December 2005, if the policy is not revived within the minimum revival period as mentioned in the policy contract, the policy will be terminated at the end of the revival period and the surrender value if any will be payable at the end of the revival period or on the completion of 3 policy years whichever is later.
The revival period for your policy has ended on 29/04/2010 and accordingly your policy has been terminated as per the above conditions. Further your policy has not acquired surrender value and hence your policy has been terminated without refund of surrendered proceeds.
Also like to confirm that as per policy contract clause number 5. Guaranteed surrender value will be paid on receipt of all the premium for a period of AT LEAST THREE CONSECUTIVE YEARS, the policy shall acquire a guaranteed surrender value with effect from the date of the third policy anniversary, reckoned from the date of commencement.
In your case we have not received any premium from 30/04/2008, hence, there is no surrender value generated and policy was terminated as per clause after 2 years of revival period on 30/04/2010 without any refund.
Trust this clarify your concern.
___________________________________________________________
Looking at the above, what do you think should be my next step?
Thanks
Prabhat
Reply #27
Dear Prabhat,
Considering the circumstances, would you like to take your case to be taken up to consumer court/forum?
Reply #28
Sure. I can do that. Can you please guide me as in which sorta of consumer court can I go to? Any consumer court or there are any specific courts like this? Also, did you see the reply #26 in the thread.
I can take it with the consumer court, I think. This is so irritating, that the IRDA would act so dumb here.
-Prabhat
Reply #29
Dear Prabhat,
We suggest you to visit this link:
http://ncdrc.nic.in/
Reply #30
They are playing game and doing fraud, this matter should be reported to CBI, they are looting hundred of Investors everyday!
Reply #31
Update: I contacted IRDA and they rejected my complaint saying the below. Anyone has an idea on how should i proceed this ahead?
_____________________________________________________________
Dear Mr. Handoo, This is with reference to the above mentioned policy number. We would like to inform you that we have checked on your policy and based on our investigation, your policy has been foreclosed. As per the specifications of the Kotak Safe Investment Plan II opted by you, the policy acquires surrender value after completion of three policy years and if the three years’ premiums are paid in full. Regarding revival of the lapsed policy , the same may be revived within 2 years of the due date of the first unpaid premium by payment of the arrears of premium along with a fixed revival charge of Rs.500/- . The revival period of your policy ended on 29/04/2010 and accordingly your policy has been terminated. In addition to this, since the three year’s premiums have not been paid in full, your policy has not acquired surrender value. Therefore, no amount can be refunded. I trust the above explanation clarifies your concern. In case of any further assistance, please contact us
_________________________________________________________
Please suggest something on how can i get my money back. Is Civil/consumer court my only option?
Thanks
Prabhat
Reply #32
Dear Mr. Handoo,
Reference to your Policy# 509503, we would like to confirm as follows.
In respect of the aforementioned complaint, we would like to inform that as per the terms and conditions of the Policy Contract and as stipulated by the Insurance Regulatory and Development Authority vide Circular no. 032/IRDA/Actl/Dec-2005, dated 21st December 2005, if the policy is not revived within the minimum revival period as mentioned in the Policy Contract, the policy will be terminated at the end of the revival period and the surrender value, if any, will be payable at the end of the revival period or on completion of 3 policy years, whichever is later.
We would like to state that the policy lapsed on April 29, 2008 due to non receipt of renewal premium. As per the above conditions, the policy was terminated on April 30, 2010. Prior to termination we have issued a termination notice letter dated February 28, 2010.
Further, the policy acquires a surrender value after completion of three policy anniversaries and payment of three annual premiums and the same is mentioned on page no.12 of your policy document. In your case the policy had not acquired a surrender value as we have received not received the three anuual premiums and hence it has been terminated without refund.
For further queries, please feel free to write to us at clientservicedesk@kotak.com or contact our Client Service Desk on 1800 209 8800 (Toll Free).
Regards, Kotak Support Team
Reply #33
So does this mean the 75000 rs that I had invested in Kotak is gone? What sense is that? Isn’t there an option to revive the policy and I could pay the remaining money and get it back? Please help. This is not sense at all. Why on earth should I just give away my 75000 INR? That is not a small amount?
Reply #34
So the last time I wrote an update here, Apurva.gangadev@kotak.com called me and told me that i have already been given my remaining amount. He also gave me options to revive the policy. And he said he will get back to me as why the systems are showing that the money has already been given. That was on May 29th. Since then he has not got in touch with me. Does anyone at Kotak Mahindra ( top management) read these notes? And they can see the mess that is in their offices. Highly unaccepatable.
Before anything, Bring Kotak Mahindra under Lokpal. These are stories of corruption and cheating.
-Prabhat
Reply #35
Dear Sir,
We request you to send a detailed mail on clientservicedesk@kotak.com ID to clarify the concerns related to policy.
Regards,
Kotak Support Team.
Reply #36
This is so stupid. You dont even have the audacity to call and confirm what your findings are. This is teh reason that I dont want to stay with Kotak. I am so frustrated and angry at each and every action that i have ever had with Kotak.
Please, I beg of you. Help me figure out my money and I will never want to hear from anyone of you. You guys have traumatized me to the core now.
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Reply #1
Dear Prabhat,
An identical complaint is already filed over here:
http://policycomplaints.com/life-insurance-complaints/kotak-mahindra-insurance/foreclosure-of-kotak-mahindra-policy-2/
It seems both these complaints are filed by the same user. Kindly clarify the same.