Young entrepreneur loses Rs 15 lakh after bank sells fake 100% tax free insurance promise

Tax break flips after a hidden Rs 5 lakh cap

A young entrepreneur says bank officials persuaded him to buy three non-market linked insurance policies claiming the proceeds were 100% tax-free. He paid around ₹22 lakh in premiums, but later learned that under new tax rules, plans with aggregate premiums above ₹5 lakh can make maturity proceeds taxable. The result: a feared loss of up to ₹15 lakh on surrender.