My father in law had started a bajaj allianz YOUNGCARESIZE2 policy (policy no.- 95508590) in my wife's name in 2008 and had been paying an annual premium of 100000 each for the last 3 years. After the initial lock in period of 3 years got over, we decided to surrender the policy for our own reasons.
When I went to surrender with my wife, I was informed that the fund value was 297000 on the 3rd of May. I was surprised to hear that over a period of 3 years, the fund was giving returns less than the money invested. To add to my shock, with each passing day the fund value decreased and today when I finally got around to surrendering the policy the value was 289000. On probing, the executive told me that the market has done down in the last few days, and hence fund value also went down. If that is the case, then when the market went up by more than 2.5 times in the last couple of years, why hasn't that reflected in the fund value of the policy???
As if that wasn't enough, I was told told that there was a surrender penalty of 48000 on the policy!!! 48000!!! So the 300000 that had been invested in this policy for 3 years stands reduced to 241000!! Does that sound fair to you? And does it sound fair that there was absolutely NO MENTION of the surrender charges by the sales executive at the time the policy was being bought?
My father-in-law had, in good faith, put his money in this and other policies, but as an informed investor I will never trust bajaj allianz again with any of my savings.
Thanks Bajaj Allianze for breaking our trust.
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