I am a US Qualified Registered Microbiologist-Medical Technologist, operating my own Clinical Lab. I have been an activist advocating consumer, civic, citizen's rights for Thirty plus years & a Frequent contributor to the letters to Editor.

Friday, October 09, 2009

Maxnewyork life again-9oct2009

9 Oct 2009,
You Max Newyork life do not seem to respect the Indian Laws , despite being in business here for the past decade or so.
You interpret it according to your convenience or to reduce your mounting losses .
It is a short sighted policy to lose a potential customer paying 4510 for the next 40 years for 45.10 paise.
Two years ago around the same time during my previous complaint that
you increased premia for riders you quoted some ununderstandable Americanese clause in the policy justifying it.
Now You are claiming nonexistent clauses to permit you to collect!
Your lawyers seem to be rewriting the laws for your American convenience.
What you have forgotten to mention is that Life insurance premia was not under the ambit of the 1996 act.
You entered into a contract when there was no service tax on premia. So you cannot now claim that without a specfic contract contrary etc for a non existent tax you are entitled to claim it.(
We wish to inform you that there is no such provision in the policy contact between the company and the customer, which forbids the company from realizing service tax from its customers. Initially service tax was being borne by the company out of its pocket, which ideally should have been borne by the customer. )
By your own admission the company was bearing the tax liability for a post contract liability like any decent insurance company was.
What has changed since the last few years is your company's bad economic performance so that you cannot even pay the 1.03 % tax on the policy. Then where is the question of the glossy bonus/performance projections that were used to entice new customers and hold on to old ones?
I refer to your story on the net which I ran into after I comlained to you.
ladhoo said:
Jun 07, 2009 11:20 PM

max new york life insurance ulip product are charges are vvv high compare to lic these private are making heavy losses as news in economic times date 14/03/07 claim settelment ratio of lic is 96.94% all private com claim settlement ratio is 74%news in economic times 29/04/08 max new york life insurance had ask goverment to give 4 yr grace peroid to carry forward losses as it already in loss from 8 yrnews in dna . losses are due to high expences heavy commision to its agent ,expences on media add , a/c offices rented on high rent .the policy holder pay premium all premium are blone like this way.
visit any lic office its no a/c anywhere as lic care for its policy holder. lic is for the people wealfare .and these comp are here to do business only
By any reading of contract law it amounts to breach of contract and any such terms which breach have to be renegotiated with the customer. You cannot unilaterally enforce it.
If the other party is not willing you need to terminate the contract without any penal clauses since you Max newyork life is the party which is violating it.
I also take serious objections to your staff invoking IRDA provisions, implying that these actions have IRDA sanction, while the premium notice claims authority under finance act of 2004.
As a to term 100 policy holder I cannot be expected to adhere to future as yet nonexisting laws.
You as a company have not survived one decade, Without breaking all norms of decent life insurance practise as was practised by LIC in pre IRDA India.

I again demand that you return the amount without any penal clauses applied to me since you are the one breaking the contract.
I again reiterate if you apply penal clauses to me for terminating the contract you shall be doing so at your own risk and consequences.
I ask that the paid up amount be refunded immediately or I can take further action as I may deem fit.
I am sending a hard copy of this by snail mail as an added precaution so that you can not claim not to have received a cancellation notice.
Thanking you
Sincerely yours,
Revathi Nataraj,
----- Original Message -----
Sent: Thursday, October 08, 2009 8:16 PM
Subject: Service Tax Clarification regarding the policy number 100090612

Dear Mrs. Nataraj

Thank you for writing to Customer Services at Max New York Life Insurance.

This is with reference to your query regarding the policy number 100090612 about the Service Tax Clarification.

We wish to clarify that under the scheme of service tax and provision of the Finance Act, 1994 the service provider (Insurance company) isresponsible to collect the service tax and deposit the same with the Government. However, the incidence of service tax falls on the recipient of the services (customer). In this regard, we wish to clarify that there has been no change in this scheme of service tax.

Accordingly, the service provider is entitled to realize service tax from its customers unless there is a contract to the contrary between the parties. We wish to inform you that there is no such provision in the policy contact between the company and the customer, which forbids the company from realizing service tax from its customers. Initially service tax was being borne by the company out of its pocket, which ideally should have been borne by the customer.

In light of the above, we wish to inform you that the company is well within its right to charge service tax from its customers. Accordingly, we wish to inform you that with effect from May 01, 2009, service tax shall now have to be borne by the customer himself.

We have started recovering Service Tax on all premiums due on or after May 01, 2009.

Please find the Break up of the service tax Applicable on the base policy and riders as mentioned below:
Name of the Plan and Riders
Modal Premium amoun
Service tax applicable
Service Tax rate as applicable
Whole Life Participating Plan - ND Rs. 4,510.00 Rs. 46.45 1.03% of the premium
Spouse Rider (Par) Rs. 939.00 Rs. 96.72 10.30% of the premium
Personal Accident Rider (Par) Rs. 135.00 Rs. 13.91 10.30% of the premium
Dread Disease 10 Yr Rider (Par) Rs. 1,466.00 Rs. 151.00 10.30% of the premium

Please find the Service tax Registration number details attached below:

Please write back to us if should you need any further assistance or call us toll free at 1800 180 5577/1800 200 5577 or write to us at service.helpdesk@maxnewyorklife.com
It is our endeavor to keep improving our services to continuously meet your expectation. Hope, the above response to your queries is complete and is to your satisfaction. In case, if you have any comments or suggestions, please write to us at manager.services@maxnewyorklife.com Please quote reference number [] in the subject line.

" We are pleased to announce launch of our Customer Portal. You can view your policy information, statements, know your fund value instantly, log and track your service requests online, know your payment history and much more. Register now @ www.maxnewyorklife.com and experience the next level of service. "
We assure you that we will continue to provide you with the service that Max New York Life is committed to deliver.

Customer Services
Max New York Life Insurance Co. Ltd.
Operation Center, Plot No. - 90 A
Sector - 18, Udyog Vihar
Gurgaon - 122002
Tel - 0124 - 2542001
Toll Free - 1800-180-5577 // 1800-200-5577
Fax number -- 0124 - 4239683

Paperless world -- Register for GREEN MAIL Service, SMS GREEN to 5616155 or simply write to service.helpdesk@maxnewyorklife.com & get all communication only by e mail.

"M B Nataraj"
To: "M.B.Nataraj" , "Revathi Nataraj" , ,
Date: 10/02/2009 08:34 PM
Subject: Re: Policy Number 100090612

2 Oct 2009,
This is in continuation of my travails with your company from day one.
Now I have a notice for service tax of 46.45 on the premium of 4510.
This is purportedly under "SERVICE TAX IS APPLICABLE OR (SIC) RISK COVER CHARGES INCLUDED IN THE LIFE INSURANCE PREMIUM IN ACCORDANCE WITH SECTION 65(105)(zx) of finance act 1994, as amended by FIncance(No2) ACT 2004 aat the applicable rates.
Kindly let me know 1) what is the risk cover charges part of the life insurance premium of 4510 agreed upon between us when the policy was underwritten.
2) What is the rate that you have used to calculate this tax
3) where this fraction has been specified in the policy provided to me.
4) Kindly provide the service tax number under which you pay this tax to the government of India.
If this matter is not resolved satisfactorily within one week you may close the policy and refund me whatever is due to me after your extortions.
I get the distinct feeling that this is some loophole that your accountants located to extort some more money from the natives.
Thanking you
Sincerely yours

THIS COMPANY(MAX NEW YORK LIFE) DOESN’T HAVE ANY CREDIBILITY.. I have similar experience with the company where I was rejected for a top-up option on what they say is "on-medical-grounds" for a "good-for-nothing"
traditional policy with Policy Number 284454196 ( I do agree that it is my mistake not to understand the policy before buying it, but its because the company agent who happened to be my friends brother misguided me and suggested me to take this policy). My personal doctor verified my report and said that there is no scope of rejecting the top-up option on medical grounds. To make it worst, they DID NOT PROVIDE ME MY MEDICAL REPORT FOR AN YEAR intentionally to make it INVALID (every medical report stays valid(in effect) only for an year) !
I thought of going to the Consumer court, however not sure if this is going to work as companies like this trap us by making us sign the multiple page confusing contract document. However I do have proof of communication emails that shows that this company has dodged from providing the medical report in time. (NO COMPANY HAS THE RIGHT TO FIDDLE WITH OUR MEDICAL REPORT AND KEEP US IN DARK. THIS IS ILLEGAL TRADE PRACTICE! )
The company customer care is highly arrogant, at the same time having the slightest idea of what is happening within.
I have lost Rs. 26,000 paying for illegal trade practice! My sincere request to all of you is to stay away fromMNYL. I have couple of other polcies with LIC, ING VYSA and all of them have good credibility.
Basically, I hate to write anything negative about any company. However this has crossed the limit. The most painfull thing here is that there is no resource in this whole company who can listen to what a customer has to say! PATHETIC CUSTOMER RELATION!

FRUSTRATED MNYL CUSTOMERPolicy Number 284454196Any suggestion/feedbacks, please reach me at rameshdreams@gmail.com

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Comments on this review (1)

krihar said:
Sep 16, 2009 11:05 AM

Teach them a lesson. You have a strong case against this Company. All customers must be suffering like you and your efforts will ring warning bells on the top mgmt.. Consumer courts are very favourable to customers and worth trying as odds are in your favor.


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