Delhi

New Delhi

CC/90/2016

Anil Tyagi - Complainant(s)

Versus

Punjab National Bank - Opp.Party(s)

16 Sep 2019

ORDER

 

 

                        CONSUMER DISPUTES REDRESSAL FORUM-VI

                          (DISTT. NEW DELHI),

                                 ‘M’ BLOCK, 1^STFLOOR, VIKAS BHAWAN, I.P.ESTATE,

                                                                       NEW DELHI-110001

 

Case No.C.C./460/2009                                                      Dated :

TC/ 90/2016                                                                                       

           In the matter of:

           Sh. Anil Tyagi

            S/o Late Sh. Ravinder Singh Tyagi

            R/o Tyagi Clinic         

            Near Punjabi Hanuman Mandir,

            Bagpat , U.P.                                                                ……Complainant

 

        Versus

1.        Punjab National Bank

Debit Card Cell

H.O. – 5, Sansad Marg,

New Delhi – 110001

Through its

Chief Manager( ATM/ Debit Card)

2.          Reliance  General Insurance Co. Ltd

Through its Managing Director

                  Mercantile House,2nd Floor,

15, K.G. Marg, New Delhi – 110001.

           

                                                                               …….Opposite Parties

 

 

 

 

 

H.M. VYAS – MEMBER

                                                                        ORDER

 

The complaint has filed this complaint under Sector 12 of the Consumer Protection Act stating that Sh. Ashish Tyagi was having  a saving Bank Account with the OP-1 at Baghpat U.P. and a debit card bearing no.5048848888010625810 was issued  by OP against the said account. As per the policy of OP-1 the debit card holder was covered under accidental insurance policy for a sum  of  Rs.   1, 00,000/- through the OP-2. Sh. Ashish Tyagi aged 21 years was pursuing his B.H.M.S from Abohar, Punjab and unfortunately he met with a road accident and died on 05/07/2007 in Punjab. The FIR bearing no. 161/2007 under Section 279/304 (A) was lodged.

The complainant, the nominee of the deceased submitted the claim on 03/01/2009 for the insured amount of Rs. 1,00,000/- with the OP-1 and filed necessary documents with claim form of the OP-2. The copy of the letter dated 11/10/2006 issued by OP-1 in respect of issuance of debit card with covering letter of the insurance benefit has been filed by the complainant.  The complainant visited the OPs to settle the claim but no heed was given. A legal notice dated 02/02/2009 was given to the OPs through Counsel by the complainant. Neither the reply to the legal notice was sent by the OPs nor the claim was released. It is stated that the complainant is the nominee of deceased Sh. Ashish Tyagi who availed services of the OP as consumer under the policy of said debit card. Following prayer has been made:-

1. That  the opposite party may kindly be ordered to pay  a sum of Rs. 1,00,000/- ( Rupees One Lac Only) towards the insured value.
2. That the opposite  party may  kindly also be ordered to pay the claims along with interest @ 24%  per annum  till the date of  realization, which are as follows:

1. Compensation  of Rs. 1,00,000/- ( Rupees One Lac only) towards compensation  for mental agony, harassment, financial  losses and deficiency in service sustained  by the complainant as aforesaid.
2. Counsels fees and costs  of Rs. 25,000/-.

3. Any other or further relief(s) which this Hon’ble Forum deems fit and proper be also granted in favour of the complainant.

 

The complaint was initially filed on 26/03/2009 and the defense of OP was struck off by the predecessor bench on 22/06/2010 and the complaint was decided on 03/09/2013.

The OP filed F.A. No. 211/14 before the Hon’ble State Commission. The Hon’ble State Commission vide order dated 07/12/2015 set aside the said orders of this Forum. The Hon’ble State Commission allowed the OP to contest the case on merits. The case was remanded back to this Forum.

Thereafter, notice was issued to the parties by this Forum and the OP-1 filed written statementdenying all allegationsleveled against the Bank. The OP-1has objectedthat the complainant is not a consumer as no services were providedto the complainant. It is also stated that in the account of Sh. Ashish Tyagithe balance was Rs. 49/- which is much less thanthe minimum requiredbalance for an active bank account and as such the account had become dormant. The bank however, has admittedthe issuanceof debit card but the insurancecover under the said debit card has been deniedon the date of this unfortunate death stating that the said accidental policy was valid only upto31/07/2007. The said facility had been withdrawnby the OP-1and informed to the Chief MASD, Head Office vide letter dated 01/03/2007 has been filed (copy filed). The said letter mentionsthat the accidentalinsurance policy on all the debit cardswill be withdrawnwith effect from 31/03/2007. In this pretext it is statedthat the debit card holderwas notcoveredas the accident took placeafterwithdrawal of the insurance cover. The date of accident was on 05/10/2007. After discontinuance of accidentalinsurancepolicy, nothingis payable to the complainant. Prayer to dismiss the complaint has been made.

The complainant filed rejoinder reiterating the contentions made in the complaint. Both the parties have filed their respective evidence by way of affidavit. The complainant addressed the oral arguments. Notice to OP-2 was issued at the address mentioned in the complaintbut none appeared .

We have perused the record before us and the submissions of the parties with relevant provisions of law.

With the OP’s letter dated 11/10/2006 the terms and conditions and the credit card issuance is apparent. In the said terms and conditions under the insurance benefit followingis mentioned.

Free personal accidental Insurance of Rs. 1.0 Lacs is available to allPNB cardholders.

 

Scope of Insurance Cove

Scope shall mean and include the bodily injuries resulting solely and directlyfrom accidentcased by external violent and visible means. If such injury, within 12 calendar months of its occurrence becomes the sole and direct cause of death of the insured person, insurance cover for the capitalsum insuredperson, insurance cover for the capital sum insured as stated above shall be applicableto insured person.

 

Persons Covered

All PNB debit cardholdersare coveredin the scheme till they maintain their account with the bank and hold a valid PNB Debit Card.

Commencement of Risk Cover: From the date customer is issued a PNB Debit Card.

 

Conditions Apply

 

Procedure for claim

The following documentsshall be required for processing the claim :-

• Claim Form
• Death Certificate
• Post Mortem Report
• Police FIR/ Panchnama
• Certificate from the bank about nomination

       Sh. Ashish Tyagi died on 05/10/2007 in road accident  and said Sh. Ashish Tyagi  was debit card holder, the complainant  states to be the nominee of the deceased.

            As per OP’s version  the  scheme  of insurance  covers was withdrawn  vide letter dated  01/03/2007 addressed to the Chief MASD, Head Office, New Delhi. Relevant portion of the letter speaks as under:-

“We are providing  free accidental  insurance cover of Rs. 1 Lac to all our debit card holders. Bank has now decided to withdraw  this facility. At present  our website  shows  that this facility exists. We have to give  at least one month notice to all our Debit Card  holders. GM(OPSD) has desired  that the notice be given to all the debit card  holders  through web site.  You are , therefore, requested  to give the following  message to our customers through website :

“ACCIDENTAL INSURANCE COVER ON ALL DEBIT CARDS WILL BE WITHDRAWN  W.E.F  31^ST MARCH, 20007.“

It is also requested  that any information  given  on the website  for providing  of free insurance  cover may please be removed immediately.”

In our considered view, the OP cannot arbitrarily modify and amend the terms and conditions where under the debit card issued to Sh. Ashish  Tyagi withdrawing the benefit of this debit card holder. Furthermore, the letter dated 01/03/2007 is an internal correspondence of with the Head Office by the OP-1  of which no intimation  regarding withdrawal of insurance  cover with the debit card  was given  to the debit card holder . Sh. Ashish Tyagi was the consumer under the Consumer Protection Act and we hold accordingly. The consequential benefit of the consumer after death devolve upon the nominee in such facts of the case and as such the complainant falls within the scope of definition of the consumer.  The arguments of the OP that the complainant is not a consumer is thus rejected. The insurance cover  with the debit card valid for one year on the date of issue of the debit card  vide letter dated 10/10/2006 is not denied and disputed by the OP. But the claim has been denied in view of the letter dated 01/03/2007 withdrawing the benefit of insurance  to the debit card holder w.e.f  31/3/2007. The withdrawal of the benefit was not informed to the card holder nor it is the case of the OP that it was notified and published through the newspapers making the information public. Such act of the OP also tantamount not only deficiency in service  but also a glaring instance of unfair trade practice.

            In view of above discussions and the facts on record, we hold the OP Punjab National Bank to be deficient in service  and direct as under :-

1. OP has to pay a sum of Rs. 1,00,000/-  to the complainant  along with 9% Simple Interest  with effect from the date of filing of this claim i.e. 26/03/2009 till the date of realization.
2. Litigation cost of Rs. 10,000/-.   

The order shall be complied within 30 days of the receipt of the copy of this order. If the said amount is not paid by the OP within a period of one month from the date of receipt of this order, simple interest at the rate of 9% per annum shall also be payable by OP on the awarded amount from the date of this order till recovery of the said amount.

 

A copy of this order be sent to each party free of cost by post as per statutory requirement.

Orders be also sent to www.confonet.nic.in.

File be consigned to record room.

Pronounced in open Forum on 16/09/2019.      

 

 

 

                                                             (ARUN KUMAR ARYA)

                                                                    PRESIDENT

 

       (NIPUR CHANDNA)                                                                       (H M VYAS)

                  MEMBER                                                                                    MEMBER