Do I have to pay income tax on the surrendered value of Insurance policy?

I have purchased an insurance policy in the year 2007 and was paying premium of around 32,000 per annum. After 3 years of mandatory premium payment, I surrendered my policy and received a surrendered amount of around INR 58,000/-. The total premium that I have paid for 3 years is around INR 96,000/-.

Do I have to pay income tax on the Surrendered value (INR 58,000/-) that I received, which is lesser than the paid premium?

How to invest in Indian Mutual Funds Online?

I am looking for an easy way to make investments in the best performing mutual funds from India.
Basically I want an online account that allows me to not only invest lumsum but gives me an ability to invest through SIPs – systematic investment plans in funds like: HDFC, KOTAK, ICICI, FIDELITY, SBI, HDFC, etc.

Can anyone let me know how can I buy/sell or purchase mutual funds units online and manage my investment solution completely online?