Are you planning to invest with Bajaj Allianz Life Insurance- think twice!

When I happen to view the television advertisement "Dad, have you planned for my future" by Bajaj Allianz Life Insurance, my blood virtually boils.

During 2006, a fraudulent agent of the company got my number from Standard Chartered Bank Cards division and approached me over phone. She explained about a product named "New Secure First", a collaboration between Bajaj Allianz and Standard Chartered Bank. The Bajaj Allianz people were poaching the gullible card users of SCB.

At that time, as I was looking to invest from a tax planning perspective, I succumbed to the false promises of the agent by name L. Jhansi. She told me that by investing Rs 10,000 per year for three years, I could get a minimum of Rs 45,000 in return during the fourth year. I asked how it was possible and she explained about the share market dynamics, talked about Equity Growth Funds and a lot of other things.

Finally, I took the policy and paid the premium for three years. When I wanted to surrender the policy last Saturday (Dec 5), the Bajaj Allianz people said that the fund value had reduced to Rs 26,415 and I had to pay 10% of that amount as surrender charges. So, after investing Rs 30,000 and waiting for three years, I was getting back 23,770. Bajaj Allianz has swallowed nearly Rs 7000 on the principle itself.

One may think that the amount had got reduced because of the sharemarket meltdowns. But, it is not the case. The reason is that the agent had proposed my money for the useless scheme "New Secure First - Silver", but explained to me the returns that one would get as per another policy named "New Secure First - Gold". This is fraud number one.

Another aspect is that out of the Rs 10,000 I had paid during 2006 (first premium), Rs 7000 had remained as unallocated premium and only Rs 3000 had gone on investments. I noticed this after receiving the policy statement and called up Bajaj Allianz. They explained that Unallocated premium referred to premium which had been received but not allocated to any of the risks. And when I asked about the returns, they said that it will be very good and I was not losing anything. This is fraud number two.

Now, on last Saturday, when I asked them for the reason, the Bajaj Allianz people at Chennai said that I had been cheated during the first year itself as the allotment was only Rs 3000 and the rest of the amount (Rs 7000) had gone on administrative charges. I wonder how a company could take 70 per cent of the premium amount on administrative charges. What 'administration' they do, God only knows!

When I asked about L Jhansi, the agent who rolled out false promises and enrolled me to a policy that fetched her maximum commission, they said they had no records about that person. They also said that I should have carefully verified the policy document within 15 days and I should have surrendered it at that point itself.

I have not yet surrendered the policy. I am going to lost Rs 7000 of my hard earned money. I could have very well paid Income Tax rather than seeking rebate and losing out to these fraudulent people.

So, if you are planning to invest with Bajaj Allianze Life Insurance, think many times and ascertain all facts. Otherwise, if you plan to invest for your child's future, Bajaj Allianz will very well give you a begging bowl at the time of maturity. Your child may ask now "Dad, what you have planned for my future"; if you go with Bajaj Allianz, he will accuse you "Dad, all that you have given me is a begging bowl". Your blood will boil ....