• Abusive clause in insurance

I had subscribe an insurance plan, that I surrender due to monetary needs, when I was going to quit it I asked a consultant of the bank if they will charge me, and he said 1% only, I have an email where I tell him that he told was only 1 %, but the issue is that when the bank deposit the return amount was almost nothing, and when I asked why they told that the plan has a clause for these cases where it says :  b)    If the term of the Poli cy is 6 years and above :
The Policy will acquire Guaranteed Surrender Value on completion of the third Policy anniversary Date , provided all premium dues during the first 36 months are paid and the Policy is in force for Basic Sum Assured The Guaranteed Surrender Value wil be equal to 65% of the premium paid for the Basic Sum Assured less the first year premium Paid.
Cash Value of any existing vested bonuses will be Paid along with the Surrender Value
I was not aware of this, none told me neither the consultant I had request a copy of the documents I signed but they had not send them to me yet they only said the policy with this clause that I never saw. I had told that their consultant then misguide me as he never told even he confirm that was only 1 % but they keep saying no. My question is what should I do in this case, can this clause be consider abusive? Please advice. Thanks so much in advance
Asked 2 years ago in Civil Law from Bangalore, Karnataka
you have to read the clauses of insurance plan you have taken not go by consultant opinion . once you have signed on the dotted line you are bound by terms of the contract . bank was justified in making the deductions as you did not keep the policy for 6 years .
Ajay Sethi
Advocate, Mumbai
23089 Answers
1212 Consultations
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Hi, your ignorance can't help you, when  you entering into the terms of the contract you to read the clause first and  you have to proceed, if you don't know the terms of the contract the court will not help you and you have to pay for your ignorance.
Pradeep Bharathipura
Advocate, Bangalore
4104 Answers
133 Consultations
4.3 on 5.0
Before signing on the dotted line of any contract legal opinion should be procured from a lawyer, which you did not. A contractual relationship capable of enforcement through the court comes into existence once you sign on the dotted line. Bank was legally justified in making the deduction as you violated the terms and conditions of the policy.
Ashish Davessar
Advocate, Jaipur
18055 Answers
445 Consultations
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You can try and report the conduct of the consultant for misguidance; further you can file a complaint before the consumer forum for adopting unfair trade practice and claim the difference amount. But you cannot undo the terms of contract which is already in force.
Sai Kiran R
Advocate, Bangalore
86 Answers
6 Consultations
4.7 on 5.0

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