Dear reader…

Another story of woe - Eagle insurance has decided to take 25% of the capital and interest of my life insurance fund - why?? to boost there bottom line of course. I have decided to withdraw my life fund with them cos there facilities and perks are useless I am lucky since I decided to cancel in the third year without investing any more money with them. You have to maintain at least 3 years with them before you can withdraw YOUR OWN MONEY.

Please read the fine print very before signing up with ANY insurance company. It is only the gullible fools like me that get tricked.

How did I benefit from this policy? I got a tacky calendar and key tag (Nos 2) last year.Of course I have fired a letter to head of life department and await his response - will keep you informed.

…the saga continues. The Customer Service manager Mr. LW spoke to me very kindly and stated that they can recover upto 66% of my money for the life insurance primary benefit he sympathized with me that the sales agent should have informed me of the penalty involved for early withdrawal (after three years). They have decided to refund me Rs. 75,745/63 although my investment account with them is Rs. 159,288/76

Here is my answer to Eagle Insurance:

Dear Sir,

I am in receipt of letter dated February 18, 2008 from your employee Mr. LW – in his letter he sympathizes with me on the financial loss I suffered due to Eagle Insurance but he was in no way prepared to alleviate it.

Conversion of the policy to a fully paid one at 8% interest you will agree is unwise at best - stupid at worst considering today’s high TB rate. The offer of Rs. 75,745/63 for my life fund in your company of Rs. 159,288/76 is unattractive and I think that I have grounds for litigation.

At the time of accepting the contract fraudulent misrepresentation took place due to the following:

1. Your trained and qualified sales Agent S D C P A stated that I will be able to recover full 150,000/- after three years plus interest. Further he stated that the other charges Rs. 9,187 was for the life cover.

2. Your sales staff markets this policy as an “investment policy” which is very misleading considering that you will lose more than 50% of your capital if you withdraw early (after three years). You must agree that this is NOT a wise investment - at 8% interest it is contemptible.

3. Using the term “Investment Account” for “primary benefit” in the policy document is a misrepresentation of its true purpose – since most of its value is eroded by primary benefit premium in early years.

4. On page 31 of the policy document details of how surrender value will be computed is not given this is clearly disadvantageous to the prospective policyholder as he is not aware of the steep charges for primary benefit. How is leaving out this information justifiable?

Your early response to the above queries will be greatly appreciated.

Will keep you all informed of any developments…