Bajaj Allianz Life Insurance
Very High Surrender Charges

My father has a Bajaj Allianz Capital Gain Unit Linked policy. He has paid 3 year premiums. The fund value is not incresing when the stock market has regained its mark and other ULIP are giving 10-15% returns, Bajaj Allainz Capital Gain policy is showing negative returns.

When we wanted to surrender, they are charging 44% of the fund value and after deduction the amount we will be getting is almost 8K less then the premium paid. So totally on loss.

Secondly other Insurance providers have 0-5% surrender charges after 3 years of the start of the policy and I read it some where that IRDA has issued an instruction for zero surrender charges after 4 years of ULIP start date.

Then why is that Bajaj Allianz people are charging so high and against the law.