LIFE INSURANCE: Annual statement must be sent even if premiums are not paid

I am a senior citzen and I have a Ulip from PNB Metlife Insurance. They have terminated my policy without giving any satisfactory reason for the same. I have requested them repeatedly to send me half yearly and yearly statement of account which till today they have not sent. I have been requesting them for the same since August 28, 2018. I have paid total premium of Rs 4,00,000- since 2010 
– Ashok Bathija

A Ulip lapses when premiums have not been paid and the fund value in the insurance is not enough to pay policy charges. This is what may have happened in your case. Even if you have not paid premiums, your insurer has certain obligations. They must send you an annual statement with the fund value and charges, and keep you informed if the insurance is being closed. You have a valid grievance if you have paid your premiums or if the insurer has not sent you the annual statements. Your next step should be to ask the insurer for the final closing statement of your insurance. If you do not hear back from the insurer then complain to the Irdai on http://igms.irda.gov.in. The Irdai does not adjudicate on such grievances but sends the complaint back to the insurer. Insurers relook the complaint more seriously when the regulator is involved. If you are still dissatisfied then write to the Insurance Ombudsman. Contact details of Ombudsmen are readily available on insurer websites. The Ombudsman's resolution process can take over a year and consists of a hearing where the insurer and you will be summoned. The Ombudsman is sure to ask whether you took any steps between 2012 when your insurance lapsed and 2018 when you complained.

The best outcome will be if the insurer reinstates your insurance. They will do this only if you are in good health and pay all unpaid premiums with interest.

I am a policy holder of ICICI Prudential Life pension plan maturing shortly. Kindly guide me how much (% of accumulated)I can commute (tax free) on maturity. I read somewhere recently that Irdai has enhanced commutation to 60% from previous one third. If it is true, kindly help with IRDA notification on this.
– G Sridhar

The enhanced commutation of 60% for pension plans, that you refer to, is in an exposure draft that the Irdai has published for comments. The draft was published on October 26, 2018 and is on Irdai's website. The final regulations are yet to be issued. It is likely that these new regulations will be applicable to new pensions sold and not applied retrospectively. This means that, most probably, your benefit structure will not change. So, you can withdraw 1/3rd of the maturity amount in your pension plan tax free. The remaining 2/3rd will have to be converted into an annuity from the same insurer that issued the pension plan. There are likely to be several annuity options you could select from. The most popular being annuity with return of premium on death or an annuity for life. And, as per current tax laws, annuities will be treated as income and taxed.

The writer is co-founder Secure Now Insurance Brokers

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