Birla Sun Life Flexi Lifeline policy
Fraudulently high mortality charges

I had purchased two policies for my children on the advice of my bank - each premium close to 90000/- they had assured that money will be safe and if unable to pay further premiums then I will be refunded only deducting few charges. Trusting the advice I signed the papers and documents since I could not understand the meaning of the complicated projections, clauses, etc. in the given time-frame.

I could not pay further premiums to these two policies and I was expecting my money back after their deduction of reasonable mortality and admin charges.

To my utter surprise, Birla Sunlife call center started giving evasive replies and started insisting on minimum three premiums - only then I can expect any refund! To get my principal back without interest I was required to pay 6 premiums! They replied that I have lost close to 2 lakh - everything is deducted to mortality and admin charges! And the policies are also lapsed two years back - so in effect for insuring two kids lives for one year they have charged two lakhs!

This is nothing but gross FRAUD being done by Birla Sunlife on unsuspecting public. Govt. and IRDA by allowing this to happen without any sort of regulation. All are looking the other way and allowing this scam operation and looting people's hard earned money.

LESSONS LEARNED

Ask probing questions to your agent to thoroughly understand the following:

1. Whose life is insured (in my case, kids lives were insured which is meaningless - I am the bread-earner and my life should have been insured!)

2. What is the lock-in period (usually 3 years)

3. What is the surrender value

4. Understand all the charges with live examples.

5. What is the guaranteed returns.

6. Within first 15 or 30 days - a free look-in period is available - we can cancel the insurance policy if not fully satisfied (THIS IS MOST IMPORTANT EXIT DOOR FOR THE PUBLIC). They try to deliver the policy late and the date on the policy reads earlier - so that hardly one week will be available as free look-in. But this you can refute by writing a letter to them of actual date of receipt.