Questions & Answers
Insurance policy cancellation for defaulting on contributions
I took insurance policies with a reputable company. There is initial contribution period of 2 years, wherein you cannot withdraw or touch your own money.
Both policies started around April 2014 and I paid diligently until October 2015. The monthly contribution is around AED 2100 per month. I stopped the other plan briefly then continued to pay until around April 2016.
Because of more financial difficulties, I was not able to pay my monthly contribution starting April 2016. My financial adviser said that my money is still there until maturity.
When I checked again, my policy is gone along with my contribution. The call centre agent said it went to the charges.
I have another plan, which is also untouchable at the moment. The financial adviser did not tell me anything about it.
I want to complain about the insurance company, as well as the broker where my financial adviser works.
Is there any legal way to recover that money? I hope you can help me.
Dear Questioner,
Your inquiry is quite common. Please note that you have to refer to the terms and conditions of the insurance policy to check the terms regulating the incident when you stop your contributions.
The fact that such terms are not very clear to you or you have been misled by the financial adviser does not shift the responsibility 100% to the Insurance company, simply because you have signed the policy and confirmed you understand its terms.
I would advise you to read through the terms of the Policy carefully to see if any of the terms can help you or if you have anything - in writing - that is considered misleading from the financial adviser or the Insurance company, and you may use to file a complaint with.
If you wish that we examine the policy on your behalf we are happy to provide you with such service.
Ahmed Elnaggar
aelnaggar@lkmbgroup.com
