Just like the complaint against Icici bank for losing/ misplacing documents…here is one against Lic Housing finance…

from another reader…

My wife and I had a similar experience with LICHFL in May-2011.
We had jointly taken a housing loan against LIC policies kept as collateral with them.

They had given us an appointment 3 months in advance for meeting their officials and collecting the loan-closure documents along with our original insurance policies.

When we reached there at 11:00 AM, were told that our file is at the bottom of the pile in a list of 10 customers. We didn’t even bother to ask why they couldn’t have called us at 2:00 PM, to avoid wasting our time !

At around 4:00 PM we were still awaiting our turn.
Finally when we were the only ones left in the waiting area, I went and sat opposite the lady and asked her what was the reason for the delay. She mumbled something about some paper missing from our file, and asked me to wait for a little more time.

At 4:30 PM when I had lost my patience and cool, she finally admitted that our original policy documents were not in the file, and were not traceable in their archives either !!!

We asked to see her manager, who heard us out patiently, and reassured us that she would ensure a resolution for the problem within 15 days. And if the policy documents were not found by then, they would arrange for duplicate policy documents within another 15 days.

When I checked with her after 15 days, she told me that they would initiate the process for issuing duplicate policy documents, as they had not located them yet.
After repeated follow-up phone calls and emails, we finally got the duplicate documents after almost 3 months.

They took such a long time to arrange for duplicate documents from their parent organization. I can’t even imagine what would have happened if they had misplaced the property registration agreement !

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  1. @Kumar, I fully agree with you !
    We keep hard & soft copies of all important documents, just in case they may be required later on.

    @ElectroV – this way at least you have proof that the documents actually existed !
    And you will surely need the copies while filing any report with the police or for a legal case.

  2. Issue related to Health insurance, Oriental insurance changed the way premium is calculated, resulting in near 100% increase in premium from last term.Below is the post I made on Medimanage forum to raise the concern hope you will share some light on the same.

    Hi Kalpesh/Medimanage Team,

    My Oriental Family Floater policy is due to expire on 21-mar-14. I received email from Medimanage that the Premium has been revised and the premium got increased from 23,685 last year to 41,651 for next term. This after taking into account the no claim discount. When I contacted Medimanage I was informed that this was due to a change in the way Oriental made for calculating the premiums.

    First thing I want to know is, is it ethical/ legal for a insurance company to change the way premiums are calculated like this for existing policy holders? The main feature of this policy was that the premiums were calculated based on proposers age, now that has been removed there is nothing great about paying a hefty premium and dealing with a government company.
    I hope as a intermediary you are fighting on our behalf with the insurance company on this. If so I would like you to disclose the communication happening between you and oriental so that we can be aware of the progress.

    Second Point: I was told by medimanage agent that oriental now considers the age of second generation (In case there are 3 generation in a policy) while calculating Premium. Currently Me, My spouse and Mother are included in the policy, and the premium calculation got shifted from being calculated based on my Wife’s age to now being calculated based on my Mothers age. The agent told that in future when I will be blessed with a child, The premium will be calculated based on mine or my wife’s age. I want you to confirm this. Also I would like to know what can we do if Oriental decide to change this rule again. As a existing policy holder we will not be left with much choice.

    Third Point: Medimanage agent also suggested that in case I want to pay a lower premium, I should reduce my coverage from 10L to 6L till I am blessed with a child and then bring it back to 10L later. She said that the policy terms should not be impacted if we do this and the exclusion criteria etc will be continued as usual. Can you please confirm the same and that this is true at all times and in all cases and there are no hidden conditions as mentioned in below post where you mentioned that this is only true if there is no claim made.


    Request you to provide detailed response to all my queries quickly as based on that I have to decide whether to continue the policy, terminate it or port it to other policy.
    Any other suggestions are also welcome.

    Thanks and Regards.

  3. Subraji,

    Does Holding our LIC policies in Demat format helps us in this type of situation ?

    Since Insurance Repository is a recent phenomenon, i am just waiting and watching before demat-ing my insurance policies.

  4. Hello Jabir,

    Thank you very much for highlighting your concern.

    Would request you to drop an email to escalation@medimanage.com for the above concern. We will surely assist you on your queries in 1 working day.

    Thank you.

    Team Manager
    Kalpesh Chavan

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