Annaiah
Complaint against Bajaj Allianz Insurance Company Ulip Policy

Bajaj Allianz New Family Gain Equity Index Fund II (ULIP plan)

Last 3 years back my friend told me about an excellent plan he has taken from Bajaj Allianz. He says it gives insurance as well as investment benefits and he was very excited about it.

He showed me the policy booklet along with all the rules and regulations.

Following are the exact details of that plan.

Premium to be paid per annum: Rs 12000.00

Sum Assured : 4, 08, 000 (15 years) (His age is 31 yrs)

Allocation : 30% (97% from 2nd year onwards)

Net investments: Rs. 3600.00

Unit Price : 15.227 (as on 4/4)

Number of Units : 236.4221

Mortality charges : -59.50 = -3.9075 units

Service tax charges : -10.37 = -0.6810 units

Rider Premium Charges: -24.48 = -1.6077 units

Policy Admin Charges : -50.00 = -3.2836 units

Total : 226.9423 (226.9423 * 15.227 = Rs. 3455.6504)

(Fund management charges is 1.25% per annum for equity fund)

Now you can decide for yourself how good is this policy when your first years premium of Rs. 12, 000 is converted to an actual investments is just of Rs 3455.65

Rest of the money which is (12000 - 3455.65 = Rs8544.34) is expenses.

Even at the rate of 12% this will take approx more then 11 years to even reach original amount Rs. 12000.

Concern is, its been 3 years, I have paid sum of 30000/- as if now, and the current value is 19000/- as if now even though the market is such a boom.

I urge government and IRDA to look after such insurance policies turnover every year and make the insurance company to provide proper returns to customers every year.

Company: Annaiah
Country: India
State: Karnataka
City: Davangere

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