In your interest.
Online Personal Finance Magazine
No beating about the bush.
Here is a real-life story of the games banks and insurers play with your money even as the regulator watches from the sidelines
People invest their hard-earned money to earn returns and grow their nest-egg. But the investment climate has become extremely toxic today. Over the past few years, millions of savers have been sold market-based schemes from insurance and mutual funds, by...
HDFC Life had refused to share all the reports except Cotinine for some policyholders under the argument that they had revised non-medical limits at the same time the customer took medical tests. It has now shared the report of another policy holder after Moneylife represented
Moneylife Insurance Helpline received the following email from Amit Kumar Mishra, “I am 31 years old. I went for Rs80 lakh term plan HDFC Life Click2Protect after cancelling the Rs75 lakh Click2Protect term plan under the condition that they will conduct a complete health check-up. In the hospital we went through several tests, but only the urine cotinine test details were available on insurer’s website. When I asked them why all details were not available, the manager said only the urine cotinine test was required and they did not collect all reports from the hospital. I have sent the reminders to the manager for uploading all the reports but still it has not been uploaded. My friend Uttam Dubey got the reports uploaded after the follow up and intervention from Moneylife helpline. Even after referring the case of Mr Dubey, HDFC Life has not uploaded the reports for me.”
It’s strange that same issue was reported by Uttam Dubey earlier. Moneylife intervention had helped to ensure HDFC Life share all the reports to Mr Dubey. In the case of Mr Mishra too, HDFC Life shared the report within one week of Moneylife taking up the issue. The insurer gave us the same argument about them revising non-medical limits at the same time the customer took medical tests.
Many customers of HDFC Life were made to undergo the tests but the reports never shared with them, because HDFC Life changed the non-medical limits at the same time. Here is the response from HDFC Life, which is identical in both the cases: “We keep revising our non-medical limits from time to time based on actual experience. Most of the times, we revise the non-medical limits and give the benefit of the revised limits to the proposals, which are pending for conversion. We had changed the non-medical limits just when Amit Kumar Mishra went for the medical examination. The centre had collected the samples and done the reports. However, as we had informed them of the revision in the non-medical limits, they only forwarded the Cotinine test report to us, on the basis of which we went ahead and converted the proposal. As the Cotinine test was the only medical test required for the conversion of Amit Kumar Mishra's policy because of the revision in non-medical limits, we had uploaded only that report. On receipt of the complaint, we have checked with the centre if they could produce the other reports, which they had retained at their end. We have now uploaded all the reports, which Amit Kumar Mishra can view at his end.”