Tamil Nadu

South Chennai

211/2007

v srikumar - Complainant(s)

Versus

city bank - Opp.Party(s)

s d s philip

12 Dec 2017

ORDER

                                                                        Date of Filing :   07.05.2007

                                                                        Date of Order :   12.12.2017

DISTRICT CONSUMER DISPUTE REDRESSAL FORUM, CHENNAI (SOUTH)

     2^nd Floor, Frazer Bridge Road, V.O.C. Nagar, Park Town, Chennai-3

                             PRESENT: THIRU. M.MONY, B.Sc., L.L.B. M.L.,                     : PRESIDENT            

                                                  TMT. K.AMALA, M.A. L.L.B.,                                 : MEMBER I

                      DR. T.PAUL RAJASEKARAN, M.A ,D.Min.PGDHRDI, AIII,BCS : MEMBER II

 

C.C.NO.211/2007

TUESDAY THIS 12^th  DAY OF DECEMBER 2017

 

Mr. V.Srikumar,

International Typewriter Emporium,

No.17/6, Anjuman Building,

Nrasingapuram Road,

Chennai 600 002.                                       .. Complainant

 

                                        ..Vs..

 

1.  The Manager-Customer Care,

Card member services,

Citi Bank,

Anna Salai,

Post Office Box 4830,

Anna Road Post Office,

Chennai 600 002.

 

2. The Manager,

The New India Assurance Co. Ltd.,

Citibank Divisional Office 712500,

Allied Mount Casa Blanca Building,

Second Floor,

New No.260, Old No.701-702,

Anna Salai,

Chennai 600 006.                                   .. Opposite parties.

 

Counsel for Complainant           :   M/s. S.D.S.Phillip  and another          

Counsel for opposite party-1     :   M/s. R.Balaji & another

Counsel for opposite party-2    :   M/s. M.B.Gopalan & others   

ORDER

THIRU. M. MONY, PRESIDENT

 

This complaint has been filed by the complainant against the opposite parties under section 12 of the Consumer Protection Act 1986 seeking direction to pay a sum of Rs.2,00,000/- as compensation for mental agonyand to rectify the reverse wrong entries in the complainant’s statement of account and to pay a sum of Rs.10,000/- as cost of the compliant.

1. The averment of the complaint in brief are as follows:

         The complainant submit that  she has availed the credit card facility of 1^st opposite party bank and took personal loan and also obtained Good Health Policy No.712500480500013 of the 2^nd opposite party for himself and his family members through the 1^st opposite party credit card.   During the month of August 2003 the complainant made requests to foreclose the  credit card account and personal loan account with the 1^st opposite party. The complainant further state that on 14.10.2003 since the opposite party has not responded the complainant sent letters dated  14.10.2013, 27.10.2003 & 20.11.2003.  On 6.2.2004 the 1^st opposite party’s customer service unit sent a reply claiming Rs.63,812.48 towards for closure of the said loan.   Immediately the complainant sent a reply dated 17.2.2004 requesting to waive all the charges including interest since the 1^st opposite party claimed interest at the rate of 23%.   Finally the 1^st opposite party sent letter dated 19.4.2004 demanding a sum of Rs.59000/- for closer of the loan account was duly paid by the complainant on 22.4.2004.  Thereafter the 1^st opposite party demanded a sum of Rs.20.269.23 towards credit card balance payment against payment of Rs.15,574/- with exorbitant interest.   The complainant sent repeatedly letters calling upon the  1^st opposite party to rectify the discrepancies.  The opposite party claimed a sum of Rs.21,000/- towards credit usage and Rs.25,000/- towards loan was paid and both accounts were closed on 1.11.2006 and on 1.2.2006 respectively.      Further the complainant state that he has issued a cheque for Rs.8020/- towards the Good Health Policy No. 712500480500013, the 1^st opposite party even after encashing the cheque has not given credit to the 2^nd opposite party  insurance company to his renewal premium of Good Health Insurance  Policy No. 712500480500013.   The complainant undergone treatment to his mother and expended huge amount.  Since the 1^st opposite party even after encashed the renewal premium amount and has not paid the premium amount towards the Good Health Insurance Policy to the 2^nd opposite party which caused mental agony and hardship to the complainant. 

2.    The brief averments in the Written Version filed by the 1^st opposite party is  as follows:

      The 1^st opposite party deny each and every allegations except those that are specifically admitted herein.   The 1^st opposite party submit that it is true that the complainant has been holding the credit card bearing No.5425569096612023 and as such he is aware of the terms and conditions of the card usage.  That apart he also held loan facilities of Rs.21,000/- which stood closed on 1.11.2006 and so also the loan of Rs.25,000/- stood closed on 1.2.2006.   The complainant had availed the option of ECS facility with this opposite party bank.    The 1^st opposite party further state that as part of the credit card facility the complainant was enjoying the Good Health Medi claim Policy coverage for self and family members and under this facility, the role of the bank is confined to that of debiting the credit card account of the card member, providing the list of members for inclusion into the facility with the 2^nd opposite party.    This policy would be renewed automatically and prior to renewal of policy, intimation to all customers will be sent by the bank and if the same is not received, the policy will be renewed and the premium amount along with transaction charges will be debited to the card account.      Hence there is no deficiency in service on the part of the opposite party and the complaint is liable to be dismissed.

Hence this complaint is filed.

2.    The brief averments in the Written Version filed by the 2nd opposite party is  as follows:

      The 2^nd opposite party deny each and every allegations except those that are specifically admitted herein.   The 2^nd opposite party submit that the 1^st opposite party bank periodically avails Group Mediclaim Policies covering its card members, from the opposite party.   In so far this opposite party is concerned as an insurer, it issues policies on the basis of persons to be included as instructed by the bank which remits the premium for the persons to be included as instructed by the bank which remits the premium for the persons to be covered.   Since the policies are contemplated only in respect of card members at each renewal or fresh policy being availed it is essentially the bank which has to furnish the list of card members to be included in any policy and pay the premium date.    The 2^nd opposite party state that in respect of complainant, while he was under cover for the period from 1.2.2006 to 31.1.2007 there was no instruction for renewal of the policy from the bank.  Even as per the allegations in the complaint a sum of Rs.8022/- purported to have been paid towards premium has been adjusted towards dues to the bank and not paid to this opposite party for insurance.    The terms of the said policy clearly specify  that there will be no Auto Renewal and that any renewal will be effected only on receipt of instructions and premium from the bank.    Hence there is no deficiency in service on the part of the opposite party and the complaint is liable to be dismissed.

3.     In order to prove the averments of the complaint, the complainant has filed proof affidavit as her evidence and documents Ex.A1 to Ex.A27 marked.  Proof affidavit of opposite parties filed and Ex.B1 to Ex.B3 marked on the side of the  opposite parties.

4.   The points for the consideration is: 

1. Whether the complainant is entitled to  a sum of Rs.8022/- paid towards  Good Health Policy No.712500480500013  towards renewal as prayed for ?

 

2. Whether the complainant is entitled to a sum of Rs.2,00,000/- towards compensation for mental agony with cost of Rs.10,000/- as prayed for ?

 

5.  POINTS 1  & 2:

         Heard both sides.   Perused the records namely complaint, written version, proof affidavits and documents.   The complainant pleaded in the complaint that he has availed the credit card facility of 1^st opposite party bank and took personal loan and also obtained Good Health Policy No.712500480500013 of the 2^nd opposite party for himself and his family members through the 1^st opposite party’s credit card.   During the month of August 2003 the complainant made requests to foreclose the  credit card account and personal loan account with the 1^st opposite party.   On 14.10.2003 since the opposite party has not responded the complainant sent letters dated  14.10.2013, 27.10.2003 & 20.11.2003 as per Ex.A4, Ex.A5 & Ex.A6.  On 6.2.2004 the 1^st opposite party’s customer service unit sent a reply claiming Rs.63,812.48 towards fore-closure of the said loan.   Immediately the complainant sent a reply dated 17.2.2004 requesting to waive all the charges including interest as per Ex.A9,  since the 1^st opposite party claimed interest at the rate of 23%  (other charges).   Finally the 1^st opposite party sent letter dated 19.4.2004 demanding a sum of Rs.59000/- for closer of the loan account was duly paid by the complainant on 22.4.2004 as per Ex.A14.  Thereafter the 1^st opposite party demanded a sum of Rs.20.269.23 towards credit card balance payment against payment of Rs.15,574/- with exorbitant interest.   The complainant sent repeated letters calling upon the  1^st opposite party to rectify the discrepancies  vide Ex.A21 & Ex.A22.  At long lost the opposite party claimed a sum of Rs.21,000/- towards credit card usage and Rs.25,000/- towards loan was paid and both accounts were closed on 1.11.2006 and on 1.2.2006 respectively which is admitted by the 1^st opposite party in his written version.

6.     Further the complainant contended that he has issued a cheque for Rs.8020/- towards the Good Health Policy No. 712500480500013, the 1^st opposite party even after encashing the cheque has not given credit to the 2^nd opposite party  insurance company to his renewal premium of Good Health Insurance  Policy No. 712500480500013.   The complainant undergone treatment to his mother and expended huge amount. But no records filed. Since the 1^st opposite party even after encashed the renewal premium amount and has not paid the premium amount towards the Good Health Insurance Policy to the 2^nd opposite party, the complainant was put to great hardship.  The complainant claiming a sum of Rs.8020/- with interest paid towards renewal premium and a sum of  Rs.2,00,000/- towards compensation with cost.

7.     The learned counsel for the 1^st opposite party contended that in this case there are three cause of action namely credit card payment, personal loan and insurance.  The allegation of the complainant is that immediately on the request of the complainant  the opposite party has not come forward to close the credit card and the personal loan.   After receipt of the letters from the complainant the 1^st opposite party issued letter claiming a sum of Rs.63,812/- towards fore-closer of the loan amount.  But the complainant  requested to waive the interest and other charges thereby the personal loan amount was reduced to Rs.59000/- and the complainant also paid the said amount on 22.4.2004 and the personal loan account was closed.   Equally the credit card also closed after payment of Rs.21,000/- and Rs.25,000/- and the accounts closed on 1.11.2006 and 1.2.2006 respectively.   After closer of the accounts the complainant issued cheque for Rs.8022/- for renewal of Good Health Insurance Policy maintained by the 2^nd opposite party by that time the policy was lapsed.  But the 1^st opposite party enchased the amount without any reason and accountant towards the balance credit.  But on a careful perusal of the statement of accounts  it is very clear that all the credit card and personal loan account were closed quite early.  Further the contention of the 1^st opposite party is that the complainant undergone treatment to his mother and claimed under good health insurance which was failed caused great mental agony.  But the complainant has not produced any record except the medical bill without any claim form.   Considering the facts and circumstances of the case this forum is of the considered view that after  payment of entire loan amount and credit card amount the complainant issued cheque for Rs.8022/- towards Good Health Insurance policy renewal premium amount.  But the 1^st opposite party without renew the insurance policy encashed the amount proves the deficiency in service.  Hence the 1^st opposite party shall pay a sum of Rs.8022/- to the complainant  with interest at the rate of 9% p.a. from the date of complaint i.e. 7.5.2007 to till the date of this order i.e. 12.12.2017 and shall pay compensation of Rs.15,000/-  towards mental agony with cost of Rs.5,000/-  and the points are answered accordingly.

          In the result the complaint is allowed in part.  The 1^st opposite party shall pay a sum of Rs.8022/-(Rupees Eight thousand and twenty two only) paid towards   Good Health Policy amount to the complainant with interest at the rate of 9% p.a. from the date of complaint i.e. 7.5.2007 to till the date of this order i.e. 12.12.2017 and shall pay compensation of Rs.15,000/- (Rupees Fifteen thousand only) towards mental agony with cost of Rs.5,000/-  (Rupees Five thousand only) to the complainant.  No order as against the 2^nd opposite party.  

The aboveamounts shall be payable within six weeks from the date of receipt of the copy of this order, failing which, the said amounts shall carry interest at the rate of 9% p.a to till the date of payment.

 

            Dictated by the President to the Assistant, taken down, transcribed and computerized by her, corrected by the President and pronounced by us in the open Forum on this the 12^th day  of  December  2017.  

 

MEMBER-I                        MEMBER-II                             PRESIDENT.

Complainant’s side documents:

Ex.A1- Sep 03 to

 Jan’07        -  Copy of statement of account for credit card

 

Ex.A2- 27.4.2002  - Copy of letter from 1^st opposite party to complainant.

Ex.A3- 28.12.2002         - Copy of letter from 1^st opposite party to complainant.

Ex.A4- 14.10.2003         - Copy of letter from complainant to 1^st opposite party.

Ex.A5- 27.10.2003         - Copy of letter from complainant to 1^st opposite party.

Ex.A6- 20.11.2003         - Copy of letter from complainant to 1^st opposite party.

Ex.A7- 28.1.2004  - Copy of letter from 1^st opposite party to complainant.

Ex.A8- 13.2.2004  - Copy of letter from 1^st opposite party to complainant.

Ex.A9- 17.2.2004  - Copy of letter from complainant to 1^st opp. party.

Ex.A10- 6.2.2004  - Copy of letter from 1^st opp. party to complainant.

Ex.A11- 26.2.2004         - Copy of letter from complainant to 1^st opp. party.

Ex.A12- 19.4.2004         - Copy of letter from 1^st opp. party to complainant.

Ex.A13- 3.3.2004  - Copy of letter from complainant to Syndicate bank.

Ex.A14- 22.4.2004         - Copy of letter from complainant to 1^st opp. party.

Ex.A15- 23.4.2004         - Copy of letter from complainant to Syndicate bank.

Ex.A16- 24.4.2004         - Copy of letter from 1^st opp. party to complainant.

Ex.A17- 27.4.2004         - Copy of letter from 1^st opp. party to complainant.

Ex.A18- 9.3.2005  - Copy of letter from complainant to 1^st opposite party.

Ex.A19- 28.3.2005         - Copy of letter from complainant to 1^st opposite party.

Ex.A20- 26.10.2005- Copy of letter from 1^st opp. party to complainant.

Ex.A21- 7.11.2005         - Copy of letter from complainant to 1^st opp. party.

Ex.A22- 23.5.2006         - Copy of letter from complainant to 1^st opp. party.

Ex.A23-24.1.2007 - Copy of letter from complainant to 1^st opp. party.

Ex.A24- 12.3.2007         - Copy of legal notice.

Ex.A25- 13.3.2007         - Copy of Postal Ack.

Ex.A26- 13.4.2007         - Copy of reply notice.

Ex.A27- 21.4.2007         - Copy of rejoinder from complainant’s counsel.

 

Opposite parties’ side document: -    

Ex.B1-                - Copy of certificate of insurance for 1.2.2006 to 31.1.2007

Ex.B2-              -         do

Ex.B3-               - Copy of GH 200508 policy terms.

 

MEMBER-I                        MEMBER-II                             PRESIDENT.