Order no. 18
The case of the complainant in brief is that he is a customer of o.p. bank and he has been holding two cards. The complainant has executed one insurance policy and premium of such Good Health Insurance Policy was paid through the o.p. bank credit card through the credit card no.5546370228397102. The complainant paid the insurance premium through the said credit card. However, the complainant was informed by o.ps. that there are some alleged dues which are to be paid immediately to avoid legal action. The complainant paid the said insurance premium in the month of Oct. 2016 by an account payee cheque, but the said amount was not credited in the account of the insurance company, for which the complainant filed this case praying for direction upon the o.ps. to pay compensation and litigation cost.
The o.ps. contested this case by filing w/v and denied all the material allegations of the complaint. It was stated that the complainant had suppressed the material facts and he was informed all along that he amount was due in the account of the complainant and he was repeatedly requested to clear the dues, but the complainant failed to comply the said request. The complainant who opted for payment of premium for the said insurance policy through his credit card no. 5546370228397102 and debit of the premium from the said credit card of the said insurance policy was subject to ‘card member terms and conditions’. The complainant availed the insurance policy viz. Good Health Insurance Policy issued by New India Assurance Co. Ltd. As per the terms and conditions of the credit card in case where the adequate credit limit was not available or that the credit card being blocked due to non payment of dues the bank becomes unable to debit the premium amount. The complainant was informed that the payment pattern of the said card holder was not regular since June, 2015 and as per the statement in respect of the said account the total amount was due Rs.651/- and Rs.851.35 which fell due on 10.7.15 and 10.8.15. Since no payment was received towards the said outstanding last payment received on the credit card ending with 1002 was in May, 2005, further interest and late payment charges was levied on the said credit card. The same was communicated to the complainant. The complainant being aware of the said fact issued the cheque and which was not honoured and the amount was not paid to the insurance company due to the holding over of the said credit card. In view of the said fact o.p. bank categorically stated that the case is barred by limitation as per the C.P. Act and the communication was made in the year 2015 and the complainant filed this case in the year 2018, therefore o.ps. prayed for dismissal of the case.
On the basis of the pleadings of parties the following points are to be decided:
- Whether the complainant had the credit card with o.ps.?
- Whether the complainant failed to pay the amount dues to o.ps.?
- Whether there was any deficiency in service on the part of o.ps.?
- Whether the complainant will be entitled to get the relief as prayed for?
Decision with reasons:
All the points are taken up together for the sake of brevity and avoidance of repetition of facts.
Ld. lawyer for the complainant argued that he is a customer of o.p. bank and he has been holding two cards. The complainant has executed one insurance policy and premium of such Good Health Insurance Policy was paid through the o.p. bank credit card through the credit card no.5546370228397102. The complainant paid the insurance premium through the said credit card. However, the complainant was informed by o.ps. that there are some alleged dues which are to be paid immediately to avoid legal action. The complainant paid the said insurance premium in the month of Oct. 2016 by an account payee cheque, but the said amount was not credited in the account of the insurance company, for which the complainant filed this case praying for direction upon the o.ps. to pay compensation and litigation cost.
Ld. lawyer for the o.ps. argued that the complainant had suppressed the material facts and he was informed all along that he amount was due in the account of the complainant and he was repeatedly requested to clear the dues, but the complainant failed to comply the said request. The complainant who opted for payment of premium for the said insurance policy through his credit card no. 5546370228397102 and debit of the premium from the said credit card of the said insurance policy was subject to ‘card member terms and conditions’. The complainant availed the insurance policy viz. Good Health Insurance Policy issued by New India Assurance Co. Ltd. As per the terms and conditions of the credit card in case where the adequate credit limit was not available or that the credit card being blocked due to non payment of dues the bank becomes unable to debit the premium amount. The complainant was informed that the payment pattern of the said card holder was not regular since June, 2015 and as per the statement in respect of the said account the total amount was due Rs.651/- and Rs.851.35 which fell due on 10.7.15 and 10.8.15. Since no payment was received towards the said outstanding last payment received on the credit card ending with 1002 was in May, 2005, further interest and late payment charges was levied on the said credit card. The same was communicated to the complainant. The complainant being aware of the said fact issued the cheque and which was not honoured and the amount was not paid to the insurance company due to the holding over of the said credit card. In view of the said fact o.p. bank categorically stated that the case is barred by limitation as per the C.P. Act and the communication was made in the year 2015 and the complainant filed this case in the year 2018, therefore o.ps. prayed for dismissal of the case.
Considering the submissions of the respective parties it is an admitted fact that the complainant enjoyed the credit card facility issued by o.p bank. It appears from the materials on record that the complainant from time to time was informed by o.ps. regarding the outstanding dues to be paid by the complainant. In spite of giving such information the complainant did not clear the dues. As a result of which as per the terms and conditions of the credit card facility enjoyed by the customer the bank had no other alternative but to hold the credit card facility. The said fact was informed to the complainant oon 25.11.15 which has also been annexed by o.ps. in their w/v. In the said letter it was categorically stated by o.ps. that the outstanding amount in respect of the said credit card with the last three digits 002 has not been paid for the last four months and as per the terms and conditions of the credit card facility the bank informed the complainant that they will be constrained to close the above named card and all linked credit card including additional credit card with effect from 21.11.15 and the bank also advised the complainant not to use your credit card at any merchant establishment or ATM as the transaction will be declined. The complainant though informed of the said fact earlier, but the complainant used the credit card and issued cheque for payment of the insurance premium, thereby the insurance premium was not cleared by the bank and for non payment of the insurance premium the policy became lapsed. Therefore, we hold that if anyone is to be blamed for such irregularities the complainant himself is to be blamed for the same. Since he failed to fulfill his obligation regarding the payment of dues to the bank within the stipulated period as envisaged in the terms and conditions of the availing credit card facility by the customer. Since the complainant failed to file this case within the stipulated period of two years and the bank took all steps as per the terms and conditions of the credit card facility, therefore we hold that there is no deficiency in service on the part of o.ps. and the complainant will not be entitled to get any relief as prayed for. Thus all the points are disposed of accordingly.
Hence, ordered,
That the CC No.201/2018 is dismissed on contest without cost against the o.ps.
