I had purchased aviva life insurance with three year locking period in 2005. It was a market linked policy and they have the worst fund managers. Like other market linked policies, my 1, 20, 000 amount is reduced to 38, 000 and despite market gettig better it hardly crossed 55, 000. But that is not what I am cribbing about.
The agent never followed up with me after I took the policy. He called me after 3 years, when I decided not to continue policy.
I decided to withdraw what ever amount I had . It showed me 55, 000 online. And you know what? The customer care execute told me that I can get only 44, 000. This is what they wrote in email. I dont understand any damn clause what they are talking about. I only know that I have made a huge huge loss...
Here is the copy of the e-mail. Thank you for writing to Aviva Life Insurance. We would like to inform you that your policy is in PAID UP status since November 2008. Further, we would like to draw your attention to Article 18, with effect from the commencement of the fourth Policy Year the Policyholder may cancel a portion of Accumulation Units held in the Unit Account in respect of the Regular Premium, any number of times subject to a minimum value of Units to be surrendered, and subject to the procedures established by the Company including the minimum value of Accumulation Units as specified by the Company that must remain in the Unit Account in respect of the Regular Premium.
17.2 The Company reserves the right to reduce the Sum Insured accordingly after the partial surrender.
In reference to your email appended below, we would like to inform you that you can make a partial withdrawal from your policy number and the minimum amount that can be withdrawn is Rs 5000/- and the remaining balance should be Rs 10, 000/- and the initial units.
Further, we will like to inform you partial withdrawal is possible upto approximate amount of rs 45432, as of today, which is subject to change as per NAV flucatations.The Company reserves the right to reduce the Sum Insured accordingly after the partial surrender.
Also, may we request you submit a duly signed written request along with policy documents(in original) to our nearest branch office in order to process the partial withdrawal.
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in short, they didnt tell me other details and now they are eating up all my money.
So, be aware.