Welcome to Moneylife Foundation’s

LEGAL RESOURCE CENTREMoneylife Foundation's Legal Resource Information Centre's (LRIC) main objective is to provide information, advice and preliminary guidance to persons needing legal help or planning legal action in 10 defined areas.

supported by

& other individuals

Q & A
HOW IT WORKS
Our panel of experts and resources are free and can be availed of anyone. Please click on Ask Question and send your query. Our Experts will provide basic guidance in due course.
You can seek help and guidance in following 10 areas such as CHS, property-related issues, Complaints to regulators, Consumer complaints, IT Act and civil liberties, Filing PILs, Whistleblowers, Sexual harassment case, Wills & nominations, RTI and Basic legal research.
ASK QUESTION
Disclaimer: The information posted on any page of this website is just a basic guidance and NOT professional tax advice.
OUR EXPERTS

Shirish Shanbhag

An MSc in Organic Chemistry and Diploma in Higher Education and Diploma in French. As a junior college teacher, he taught theory and practical in chemistry, to students in 11th and 12th standard at Patkar College from July 1980 to May 2012. After his retirement in May 2012, he started providing guidance to people on several issues. It includes, career guidance, Cooperative Housing Societies' legal paper works, Right to Information (RTI), Lokayukta, Ombudsman complaints, Marriage Registration,

Bapoo Malcolm

Bapoo Malcolm is an Advocate at the Bombay High Court and a former national cycling champion and a man of many interests. Mr Malcolm is an expert in the mechanics of preparing Wills. He is advocate practising civil and criminal law as well as documentation and arbitration. He also takes up family court matters, redevelopment and MHADA matters and testamentary work, including litigation. Mr Malcolm operates in areas up to Nashik and Valsad and from Igatpuri to Udvada. He has experience in polluti

Jamshed Mistry

Jamshed Mistry is a BCom, LLB, DLL & LW. He appears as Counsel in the Supreme Court and in various High Courts all over India. His clients have included several corporate companies as well as public sector corporations and institutions eg. the Reserve Bank of India and the Brihanmumbai Electric Supply and Transport Undertaking. He also works actively for social causes like the rights of disabled persons, beach safety (Goa Action Plan), the setting up of distinct hawking and non-hawking zones in

Shailesh Gandhi

Shailesh Gandhi is a graduate in Civil Engineering from IIT Bombay. He was a first generation entrepreneur in plastic packaging and was CMD of Clear Plastics Ltd. At the end of the 90

Abhay Datar

Abhay Datar is a consumer activist and is also Member of the Managing Committee of Mumbai Grahak Panchayat (MGP). He was Treasurer at MGP for over two and a half years. After working at Bank of Baroda for about 29 years, he retired as IT Manager. After retirement, Mr Datar joined Consumer Guidance Cell of MGP in 2008 and solved many cases related to banking including online fraudulent transactions, misuse of credit cards and ATM cards. Also handled cases related to mobile and mediclaim. Mr Data

AV Shenoy

AV Shenoy hold degrees in both Mechanical and Electrical Engineering from VJTI, University of Bombay and a Post Graduate Diploma in Industrial Management from Jamnalal Bajaj Institute of Management Studies. Worked as a Design Engineer in Electrical Business Group of Larsen & Toubro Ltd. at Powai from October 1969 to September 2001 and retired as Dy. General Manager. Also worked as a Facilitator/Trainer for implementation of Total Quality Management (TQM) and ISO 9000 in the organization. Since r

SD Israni

Dr SD Israni is an Advocate & Partner of SD Israni Law Chambers and has over 37 years of experience in the field of Corporate, Commercial and Securities Laws. He has simply written the book on Indian securities laws, copies of which he kindly donated to Moneylife Foundation library. Dr Israni's professional achievements are formidable. He was a member of the Naresh Chandra Committee for simplification of Company Law relating to private and small companies. He has been on SEBI's committee on

Mohana Nair

Mohana Nair is an Advocate practising in the Bombay High Court since January 1982. She is a partner at JMB Partners, director at Ugam Solutions and director at Avalon Consulting and has been a Proprietor at Mohana Nair Associates in the past. Ms Nair is a member of the Notary, Greater Mumbai since 1993, a member of the Bombay Bar Association, Intellectual Property Law Practitioners Association and of the Legal Cell of Bombay Chamber of Commerce. Her clients include multinationals, foreign compan

Ashok Ravat

Ashok Ravat is a qualified metallurgical engineer from UK in Systems and Operation Research. Being a passionate activist he has dedicated himself to consumer, environment and civic causes all his life. His consumer protection interests include being the Hon. Secretary of the All-India Bank Depositors

Sandeep Jalan

Sandeep Jalan is a B Com and a LLB and is on the rolls of the Bar Council of Maharashtra and Goa since March 2010. He has under the guidance of the former Central Information Commissioner Shailesh Gandhi, has provided assistance to the State Information Commission, Mumbai, in strategizing expeditious disposal of 2nd appeals filed there. He is associated with many groups such as Advocates at Supreme Court of India, CSR India (IRDS), Corporate & Legal Professionals of India, Lawyersclubindia, Lead

Sachin Gupta

Advocate Sachin Gupta is a BCom, LLB and LLM and also has a diploma in International Law from the London School of Economics. He is currently a partner at Negandhi Shah and Himayutullah, which is one of the leading law firms of India associated with a vast range of commercial transactions involving corporate and civil law issues and provided guidance on legal issues to various privatization projects to major Indian and overseas corporates and to the State

Yogesh Sapkale

Yogesh Sapkale is Deputy Editor of Moneylife and writes on legal, RTI, and consumer issues

Raj Pradhan

Raj Pradhan is columnist at Moneylife magazine and had written over 40 cover stories on insurance. Raj has done his BE (Computers) from Bombay University and MBA in Finance from Cleveland State University in the US. He has worked as an Information Technology and Business Consultant in India and the US for over 15 years including over five years in the health insurance sector.

Date : 19/05/2017

Dear Sir/Madam,

This is another aggrieved customer of the fraudulent ULIP industry that has been thriving like a parasite on hard earned money of small investors like me and my family.

In our case, the company is AVIVA life Insurance co. Ltd, myself and family have been mis sold numerous policies since 2004. I am surprised that such unilateral policies were approved by IRDA, whereas, as a country, we are proud of our banking, financial and insurance control system.

We have been sold policies which have vague terms and conditions which are completely unfavourable for the investors and tantamount to day- light robbery and these are totally one sided policies which fill the pockets of the company and its agents.

These policies were incorrectly marketed and sold to my father, Mr. Ramesh G. Mody in December 2004, when he was 1 month away from his 60th birthday. You will be amazed to learn that, the new policy had the premium paying terms of more than 50 years, starting from 2004. These policies were fraudulently marketed and sold by the staff of ABN Amro company as fix income, money back policies. My father was caught unaware in this matter.

Similarly, other 6 policies were incorrectly marketed and sold to my father between 2004 to 2006(in our names). Again, these were sold as fix income , money back policies. These policies are in the name of myself, my wife, my brother , sister-in-law and some company Key-man policies too. All of us were living and working in France at that time. Our age was between 26 to 34 years at that time. Each of our policies had a premium paying terms of 55 to 65 years. Which sane business family would take such policy where an individual has to continue paying insurance premium till he/she turns more than 80 years of age ???

The forms were signed by us in France and sent to India via courier. When the call back about the correctness/usefulness of this insurance policy happened, we were not in India. We did not know, whether such norm existed at that time or not, and when this happened��.regarding these policies. Call back went on my father�s india number, who approved the policies, thinking them as as fix income, money back policies.

My father understood about the actual allocation of funds and the real movement of this policy after 4/5 years. He visited many people in Aviva office. He was again wrongly advised to make some changes in his existing Aviva policy, upon receiving advice from 1 of the Aviva staff members. He tried to make these changes in 2010 and his policy was made PAID UP by Aviva , whereby he suffered a loss of more than Rs. 6 lakhs. The advising Aviva staffer was nowhere to be seen now. All his efforts to apologise and to make his policy active again were in vain. His policy was abruptly discontinued and he suffered a definitive loss.

After this bitter experience, we were advised by different financial/insurance consultants that, we should not try to change the existing policy or the premiums. Just pay the premiums and request for partial withdrawals. For the existing 6 policies now, we are religiously following this practice. But, even while doing this, we are suffering losses each year. The amount of maximum partial withdrawal allowed works out to be far lesser than the premium amount. Also, Aviva keeps at least 3 to 4 premium amounts with themselves as a buffer (in each policy). That amount always remains with the company. Never comes back even via partial withdrawal request.

We have requested Aviva by phone, by writing��.to let us exit these 6 policies at the accumulated fund value, which is not much higher than the total premiums paid and retained by the company. But, the company has the audacity, to not let us exit out of these policies and they have created long walls of surrender charges which take away half of my fund value even after paying the premiums for 12-13 years.

Even if Aviva allows us to exit the 6 policies at the fund value as on today, we would not be earning more than 2% compounded interest on the total premiums paid.

To put things under perspective, I have have attached above an 'XLS' sheet which shows that my existing 6 policies are just about at par to the principal that I have paid even after so many years and now I do not even get to exit without paying surrender charges, thereby loosing almost half of my fund value.

Details of my father�s OLD Aviva policy, which was done PAID-UP forcibly, are also with me.

We have communicated with AVIVA directly. We have raised many questions, but we have not got satisfactory/logical official replies from their side, pertaining to our policies.

We had complained to IRDA as well. But, they re-directed us to Aviva, where some ground officials are understanding the issue, but are unable to help.

Kindly help us by looking into our matter. I am sure your respectful office will repose my faith in the financial justice system.

Thanks & Best Regards : Nikhil Mody & Family

Note : Since April 2017, I have permanently moved back to India. Now, I can allocate my time and energy to fight against this company and its �specially designed� uni lateral policies.


Answered  Regulators RBI, SEBI etc
Comments
View Our Experts
Our Experts

Shirish Shanbhag An MSc in Organic Chemistry and Diploma in Higher Education and Diploma in French. As a junior college teacher, he taught theory and practical in chemistry, to students in 11th and 12th standard at Patkar College from July 1980 to May 2012. After his retirement in May 2012, he started providing guidance to people on several issues. It includes, career guidance, Cooperative Housing Societies' legal paper works, Right to Information (RTI), Lokayukta, Ombudsman complaints, Marriage Registration,

Bapoo Malcolm Bapoo Malcolm is an Advocate at the Bombay High Court and a former national cycling champion and a man of many interests. Mr Malcolm is an expert in the mechanics of preparing Wills. He is advocate practising civil and criminal law as well as documentation and arbitration. He also takes up family court matters, redevelopment and MHADA matters and testamentary work, including litigation. Mr Malcolm operates in areas up to Nashik and Valsad and from Igatpuri to Udvada. He has experience in polluti

Jamshed Mistry Jamshed Mistry is a BCom, LLB, DLL & LW. He appears as Counsel in the Supreme Court and in various High Courts all over India. His clients have included several corporate companies as well as public sector corporations and institutions eg. the Reserve Bank of India and the Brihanmumbai Electric Supply and Transport Undertaking. He also works actively for social causes like the rights of disabled persons, beach safety (Goa Action Plan), the setting up of distinct hawking and non-hawking zones in

Shailesh Gandhi Shailesh Gandhi is a graduate in Civil Engineering from IIT Bombay. He was a first generation entrepreneur in plastic packaging and was CMD of Clear Plastics Ltd. At the end of the 90

Abhay Datar Abhay Datar is a consumer activist and is also Member of the Managing Committee of Mumbai Grahak Panchayat (MGP). He was Treasurer at MGP for over two and a half years. After working at Bank of Baroda for about 29 years, he retired as IT Manager. After retirement, Mr Datar joined Consumer Guidance Cell of MGP in 2008 and solved many cases related to banking including online fraudulent transactions, misuse of credit cards and ATM cards. Also handled cases related to mobile and mediclaim. Mr Data

AV Shenoy AV Shenoy hold degrees in both Mechanical and Electrical Engineering from VJTI, University of Bombay and a Post Graduate Diploma in Industrial Management from Jamnalal Bajaj Institute of Management Studies. Worked as a Design Engineer in Electrical Business Group of Larsen & Toubro Ltd. at Powai from October 1969 to September 2001 and retired as Dy. General Manager. Also worked as a Facilitator/Trainer for implementation of Total Quality Management (TQM) and ISO 9000 in the organization. Since r

SD Israni Dr SD Israni is an Advocate & Partner of SD Israni Law Chambers and has over 37 years of experience in the field of Corporate, Commercial and Securities Laws. He has simply written the book on Indian securities laws, copies of which he kindly donated to Moneylife Foundation library. Dr Israni's professional achievements are formidable. He was a member of the Naresh Chandra Committee for simplification of Company Law relating to private and small companies. He has been on SEBI's committee on

Mohana Nair Mohana Nair is an Advocate practising in the Bombay High Court since January 1982. She is a partner at JMB Partners, director at Ugam Solutions and director at Avalon Consulting and has been a Proprietor at Mohana Nair Associates in the past. Ms Nair is a member of the Notary, Greater Mumbai since 1993, a member of the Bombay Bar Association, Intellectual Property Law Practitioners Association and of the Legal Cell of Bombay Chamber of Commerce. Her clients include multinationals, foreign compan

Ashok Ravat Ashok Ravat is a qualified metallurgical engineer from UK in Systems and Operation Research. Being a passionate activist he has dedicated himself to consumer, environment and civic causes all his life. His consumer protection interests include being the Hon. Secretary of the All-India Bank Depositors

Sandeep Jalan Sandeep Jalan is a B Com and a LLB and is on the rolls of the Bar Council of Maharashtra and Goa since March 2010. He has under the guidance of the former Central Information Commissioner Shailesh Gandhi, has provided assistance to the State Information Commission, Mumbai, in strategizing expeditious disposal of 2nd appeals filed there. He is associated with many groups such as Advocates at Supreme Court of India, CSR India (IRDS), Corporate & Legal Professionals of India, Lawyersclubindia, Lead

Sachin Gupta Advocate Sachin Gupta is a BCom, LLB and LLM and also has a diploma in International Law from the London School of Economics. He is currently a partner at Negandhi Shah and Himayutullah, which is one of the leading law firms of India associated with a vast range of commercial transactions involving corporate and civil law issues and provided guidance on legal issues to various privatization projects to major Indian and overseas corporates and to the State

Yogesh Sapkale Yogesh Sapkale is Deputy Editor of Moneylife and writes on legal, RTI, and consumer issues

Raj Pradhan Raj Pradhan is columnist at Moneylife magazine and had written over 40 cover stories on insurance. Raj has done his BE (Computers) from Bombay University and MBA in Finance from Cleveland State University in the US. He has worked as an Information Technology and Business Consultant in India and the US for over 15 years including over five years in the health insurance sector.

To ask a question

Please
Sign Up or Sign In
with
Email
than you