This is a true story. And I happen to be the protagonist of this tale. It begins in 2003 when I purchased two unit-linked pension plans (despite my reservations about insurance companies' ability to manage money as well as mutual funds) to take advantage of the benefits under section 80 CCC. My association with the insurance company was smooth for the first three years, as our interaction was limited to me injecting more and more funds into my scheme.

However, in 2006, the government decided to make my life happier by merging Section 80 CCC with Section 80 C. As a result, I no longer needed to give the insurance company their annual doses of Vitamin M in order to save taxes. Hence, I decided to surrender both the pension plans.

What I did not realise is that this innocuous request on my part would lead to chaos. The first thing to change was the 'courteous quotient' of the call centre personnel and I was told rather curtly that the policy papers could not be collected from my house.

On reaching their offices, I was informed by the official that they would not be able to accept the policy papers, as my first year premium receipt was missing. This in spite of my policy papers clearly stating that it was "Fully Paid Up"!  But, this was resolved after a heated argument.  I received the surrender proceeds of one of the two policies after an abnormally long period of 20 days (unlike in a mutual fund wherein I receive the proceeds in three days). The other cheque was yet to come.

Thus began my woeful journey. Call centre phones suddenly stopped responding. And if they were answered at all then, I would be subjected to a metallic voice which asked me to leave the policy number and that they would get back to me. I left my number over 10 times but they never responded.  When somebody mercifully answered the phone on the fourth day, I was subjected to a barrage of queries and was told that my surrender request was being processed. This, after nearly 25 days of submission to the initial request.

Then I tried the www route. That is, I complained on the website. Wrong move. After five days I received an auto-response saying that they have received my mail and will respond to me in two working days. Even after four more working days, when there was no response, I sent another e-mail. This time too the response time was identical.  Finally I received a mail from the company saying that the request was still being processed.

I even made an attempt to speak to the expatriate CEO. However, my efforts were stonewalled by some creative responses.

Finally, reaching my wits end I contacted an acquaintance of mine within the company. Only his repeated intervention in the matter helped me to ultimately resolve my problem, exactly 40 days after I had submitted my surrender request.  The covering letter did not even mention the delay in the payment, let alone apologise for it. Also, it did not state the particular net asset value at which my units had been redeemed.

But more importantly, I asked myself - What if I had not known somebody from within the company?  How will the millions who do not have friends in the right places (read the insurance company) get their grievances redressed? Some may have to approach the Insurance Ombudsman, but that is another story altogether.

The scarier thought is what would have been the (financial and emotional) state of my heirs, in case they have had to run around to get my life insurance policy proceeds?

One charitable explanation for the above incident is that it was a 'one-off' case. And I was that 'one-in-a-million' person who had to suffer. Well, for the sake of the masses, I really do hope that this explanation is the right one. 

Problem solving

• Pester your insurance agent continuously and compel him/her to take up cudgels on your behalf.
• Contact the grievance redressal cell of the insurance company (in case they have one). Submit your grievances in writing and take a written acknowledgment of receipt from the company.
• Approach the media. Today there are certain programmes/articles in the electronic and print media, which serve as grievance redressal cells. Take advantage of such shows.
• Approach the Insurance Ombudsman. The procedural details as well as addresses of the offices of ombudsmen throughout India can be found on http://www.irdaindia.org/ins_ombusdman.htm

The writer is vice-president, Parag Parikh Financial Advisory Services.