Sunday, November 4, 2012

How to surrender your Bharti-AXA life insurance policy?

Many times you trust your insurance agent blindly on taking life insurance policy. And later on, you discover you got a product with lots of high charges. Sometimes, the product might be just right but you need money urgently. Partial withdrawal option is good but may not give you the full amount you're looking for. Another scenario can be you can want to invest your ULIP money somewhere else like Gold for better returns. The reasons can be many. But the solution is one – just surrender your life insurance policy.

Let us look at the procedure to surrender your Bharti-AXA life insurance company.

First check out the lock-in period of your policy. Certain plans have 3-year lock-in period, while other have 5-years lock-in period. You can not surrender your policy in lock-in period. Even if you surrender your policy in lock-in period (if your plans allows so), you'll get your money after the lock-in period is over.

Secondly, check the surrender charges. What are these? These charges will be deducted from your policy fund value before giving you your money. E.g., if your policy in 4th year, and the surrender charges are 10%, the company will deduct 10% from your fund value before making payment to you. 

The surrender value will be calculated basis on the fund value as on date the company receive your request for surrender.

Certain policies like Bharti-AXA Future Confident II plan has no surrender charges after 5 years and lock-in period is 3 years.

You can check lock-in period and surrender charges from your policy bond or call the company customer care department.

Now, make the copy of your complete policy bond as you need to surrender original policy bond to the company.

Carry your original ID proof like PAN card and a cancelled cheque (with your name on it). Visit the nearest Bharti-AXA life insurance branch. Please click on the link below to know the address of the nearest branch in your city:

Branch Timing: 10:00 am to 5:30 pm from Monday to Saturday

Branches will remain closed on 1st and 2nd Saturday of every month.

You'll get the form to surrender your policy from the branch or you may download it from here. Fill up there and submit the required documents. Get the acknowledgement letter from the branch. The money will be directly credited to your bank account within 15 working days.

Some points to note:

  • It's better to a talk with customer care department of the company first to get idea of lock-in period, surrender charges, fund value, documents required etc.
  • Next, talk to the branch operations department and ask for the timings.
  • You can not hand-over your policy bond to your agent or any other person or courier it to surrender your policy. They will not accept it. The policy holder MUST visit the branch to surrender the policy. If there is no branch in your city, email the customer care department and get the written permission to surrender your policy to Karvy office in your city.
  • After you surrender your policy, learn the lesson from your mistake and do not repeat in your portfolio again.

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