I had purchased the ICICI Life Assure policy (Policy No. 10993210)
from the Vasant Vihar Branch of ICICI Bank in January’09. The policy
has an annual premium of Rs.20,000.

I recently saw the statement and was appalled to see that my ENTIRE
1st year premium has been deducted as premium allocation charges. When
I bought the policy I was told by the banks staff that the first year
premium has a guaranteed return in case the stock market that was
going through a turbulent phase would collapse. They never told me
that the entire first year premium would be withheld by ICICI Bank and
not at all invested. WHO WOULD GIVE Rs.20,000 FOR A GUARANTEE OF
GETTING THE SAME BACK AFTER 10 YEARS? THIS IS A SCAM. Infact, even the
guarantee was explained as a 100% return ie you would at a minimum get
2x back after 10years in case the value of these units is below the
principal amount.

The bank personnel very well understand this and hence don’t put these
points on the table. Such a policy can only be called a scam with
liberal commissions being given to the sales channel – it is quite
apparent from the behavior of the staff – they are so motivated to
sell such products. And when I went to the bank, they have a nice
excuse – the document was sent to you and you had 15 days to read all
the fine print. Very clever policy indeed. In essence they are fooling
the customer while we trusts them because of the banking relationship.

My rationale of buying the policy during the downturn was that the
invested money would have a good upside if the market recovered. I am
completely shocked to see that ICICI withheld my premium payment and
is being so nice to return the same amount after 10 years.

IRDA understands the finance market – is there any rationale for such
policy terms? why are these policies not subject to any approvals –
they are just fooling innocent people on the strength of their brands.

I do not want this policy – please ensure that ICICI Prdential returns
the Rs.40,000 ie the 2 premiums that I have paid so far.