My wife and I visited the HDFC Krishna Nagar Branch in Delhi to take care of some funds in our Non Resident accounts in late July. While being there, we were introduced to HDFC Life Policy in the name of making investments. The Asst Bank Manager laid out the benefits of the policy and painted the picture green (very green actually). In the end, we were only told about the benefits and the term (period) of the policy, which looked interesting and on the spot we decided to go for it (big mistake!!).
As part of their consumer centric company, they even promised to send the Bank Agent to our home to get the signatures, etc. The agent did come, though a day late than scheduled and wherever he pointed, we just signed and signed. So far so good.
Three weeks after agreeing to buy the policy and issuing the cheque, we received the policy documents. After I went through the "fine" print on the policy, I was shocked to learn the schedule of charges. First of all, these charges or the service terms were not at all told to us. Second, even if I think of ignoring the fact that Bank Personnel conveniently hid the schedule of charges, the charges are not cheap. Just to allocate the NAVs, the bank is charging 4% of the invested amount plus Rs500 per month of maintenance, administrative, and what-not charges, setting us approximately Rs 10, 000.00 back per annum.
We strongly feel that we have been duped by HDFC. Now, when we look back at the discussion, we found the HDFC Bank Personnel very deceptive. Yes, I am stupid for not inquiring about the charges but who would have thought that banks now charge you for your own Life Insurance policy. Last time I bought one, the bank made the money from the money I gave them. Discussing the policy benefits without disclosing such charges is deceitful and is considered a bait-and-switch. We are appalled that the HDFC Bank and their Agents have not been honest with us.
I had immediately written an email to HDFC mentioned in the policy document. I didn't get any response. I wrote again, and also Cc'ed to the Nodal Officer this time. No response again. It has been over a week now. My heart is sinking over the fact that we made an investment of 2 lacs and this amount seemed to be under the water.
I am still figuring out the next course of action. Discontinuing the policy seemed like viable option but the policy contract states heavy fines, further charges, etc. to save us from future trouble and agony. But if that happens, the HDFC would lose all my business and (of course) I will close down all my accounts.
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