Karnataka - Bangalore   

Insurance company asked to pay credit card holder

Bangalore: The Bangalore Urban District Consumer Forum has directed a private insurance company to reimburse medical expenses to the tune of Rs. 2 lakh along with 9 per cent interest to a credit card holder.

The forum, comprising its president A.M. Bennur, members Syed Usman Razvi and M. Yashodhamma, passed the order on a complaint by N. Srinath Rao, a resident of R.T. Nagar.

According to the complainant, the ABN-AMRO Bank had issued him a credit card along with insurance coverage for two years from June 2006 for an assured sum of Rs. 2 lakh. For the insurance coverage, the bank had tied up with the ICICI Lombard General Insurance Company Limited.

The complainant, who underwent an angioplasty in March 2007, claimed from the bank reimbursement for the Rs. 4 lakh he spent on treatment at a private hospital. The bank, in turn, directed him to the insurance company. However, the insurance company claimed Mr. Rao had become a defaulter in payment of insurance premium and hence the policy was cancelled.

But it was proved before the forum that the bank was deducting the insurance premium every month through complainant’s credit card and paying it to the insurance company. Hence, the forum found that Mr. Rao could not be held responsible for non-payment of premium, if any, as it was responsibility of the bank which had sent him the insurance policy in collaboration with the insurance company. Also, the forum did not find any proof of non-payment of premium towards the company.

Holding the insurance company guilt of deficiency in service, the forum directed it to pay Rs. 2 lakh to the complaint as against the claim of Rs. 4 lakh because the insurance was limited to Rs. 2 lakh along with 9 per cent interest from April 2007.

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