Tamil Nadu

South Chennai

541/2006

A.Balaguru - Complainant(s)

Versus

Royal Sundarajm Alliance Insurance Co.Ltd and anot - Opp.Party(s)

V.Balaji

04 Jun 2018

ORDER

                                                                        Date of Filing  : 12.09.2006

                                                                          Date of Order : 04.06.2018

 

DISTRICT CONSUMER DISPUTES 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

 

C.C. No.541 /2006

DATED THIS MONDAY THE 04^TH DAY OF JUNE 2018

                                 

A. Balaguru,

S/o. Mr. M.A. Raju,

No.45/3, Sachidanandam Street,

Kosapet,

Chennai – 600 012.                                                  .. Complainant.                                                      ..Versus..

1. The Manager,

ROYAL SUNDARAM ALLIANCE

INSURANCE COMPANY LTD.,

SUNDARAM TOWERS,

Nos.45 & 46, Whites Road,

Chennai – 600 014.

 

2.  The Manager,

SBI CARDS & PAYMENT SERVICES PVT. LTD.,                                            Tiam House,

Rajaji Salai,

Chennai – 600 001.                                              ..  Opposite parties.

          

Counsel for complainant           :  M/s. S. Umapathy & another

Counsel for 1^st opposite party  :  M/s. M.B. Gopalan & Others

Counsel for 2^nd opposite party :  EXPARTE

 

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 praying to pay a sum of Rs.50,000/- towards compensation for mental agony and to pay the cost of Rs.3,000/-.

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

The complainant submits that he is a credit card holder of the 2^nd opposite party provided with medi claim policy of the 1^st opposite party from 20.06.2003.  The sum assured to the policy is Rs.1,00,000/- and the premium amount is Rs.2,329/-. At the inception of policy, the complainant opted for automatic renewal facilities also thereby, the 1^st opposite party debited the premium from the complainant’s SBI card issued by the 2^nd opposite party.  During the year 2004, after retirement from the service the complainant submitted a letter dated:03.12.2004 for due cancellation of SBI credit card. The 2^nd opposite party also duly cancelled the credit card.   The complainant therefore, in the year 2005 paid the premium amount through cheque No.688202 dated:02.06.2005 drawn on Canara Bank, Chennai which was duly accepted by the 1^st opposite party.  The premium for the year 2006 was tendered by the complainant by way of cheque dated 19.06.2006 was returned.   On enquiry, the 1^st opposite party claimed the premium through the credit card of the 2^nd opposite party after due cancellation; the 2^nd opposite party also paid the premium amount through the credit card which amounts to deficiency in service.  Further complainant submits that, immediately after cancellation of credit card, the 2^nd opposite party is not entitled to transact any amount through the credit card.  The 1^st opposite party even after collecting the premium amount during the pendency of this case, cancelled the policy without any reason vide letter Dated:21.01.2007.   The complainant further submits that on 25.07.2006 he issued notice to both the opposite parties regarding the unauthorised debit made from the cancelled SBI Card.  Even though both the opposite parties acknowledged the notice, till date they have not issued any reply.  The complainant submits that without realizing the cheque issued by the complainant towards the premium for the year 2006  and unauthorizedly debiting the premium amount from the SBI card by the 1^st opposite party amounts to deficiency in service.  Hence the complaint is filed.

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

The 1^st opposite party specifically denies each and every allegation made in the complaint and puts the complainant to strict proof of the same.   The 1^st opposite party states that, the complainant availed a Group Insurance Policy provided to the credit card holders of the 2^nd opposite party.  Further the 1^st opposite party states that, the cancellation of SBI card has not been intimated to the 1^st opposite party either by the complainant or by the 2^nd opposite party.  As per the facilities availed by the complainant, the 1^st opposite party claimed the premium amount from the credit card of the 2^nd opposite party and was duly collected.   Hence the cheque issued by the complainant was rightly returned without collection.   Further the 1^st opposite party states that, on the instruction of the complainant, during the course of pendency of the case, the policy was cancelled.   Therefore, there is no deficiency in service on the part of the 1^st opposite party.   Hence this complaint is liable to be dismissed.

3.     Eventhough notice received by the 2^nd opposite party, the 2^nd opposite party has not chosen to appear before this Forum.  Hence the 2^nd opposite party was set Exparte for non appearance.

4.     The point for consideration is :-

Whether the complainant entitled to a sum of Rs.50,000/- towards compensation for mental agony as prayed for with cost of Rs.3,000/-?

5.     On point:-

The 2^nd opposite party remained Exparte.  Heard both sides.  Perused the records namely the complaint, written version, proof affidavits, documents etc.  Admittedly, the complainant is a credit card holder of the 2^nd opposite party provided with medi claim policy of the 1^st opposite party from 20.06.2003.  The sum assured to the policy is Rs.1,00,000/- and the premium amount is Rs.2,329/-.   At the inception of policy, the complainant opted for automatic renewal facilities also thereby, the 1^st opposite party debited the premium from the complainant’s SBI card issued by the 2^nd opposite party.  During the year 2004, after retirement from the service the complainant submitted a letter dated:03.12.2004 for due cancellation of SBI credit card as per Ex.A1. The 2^nd opposite party also duly cancelled the credit card.   The complainant therefore, in the year 2005 paid the premium amount through cheque No.688202 dated:02.06.2005 drawn on Canara Bank, Chennai as per Ex.A2 which was duly accepted by the 1^st opposite party.  The premium for the year 2006 was tendered by the complainant by way of cheque dated 19.06.2006 was returned.   On enquiry, the 1^st opposite party claimed the premium through the credit card of the 2^nd opposite party, after due cancellation the 2^nd opposite party also paid the premium amount through the credit card which amounts to deficiency in service and unfair trade practice. 

6.     Further the learned Counsel for the complainant further contended that, immediately after the cancellation of credit card, the 2^nd opposite party is not entitled to transact any amount through the credit card.  The 1^st opposite party even after collecting the premium amount during the pendency of this case, cancelled the policy without any reason vide letter Dated:21.01.2007 as per Ex.A9.   In Ex.A9, it reads as follows: “We have received your request for cancellation of the above Insurance policy”.     But the complainant has not given any instruction to cancel the policy and the 1^st opposite party also not produced any document to prove the same which amounts to fraud and unfair trade practice.   The collection of premium through the cancelled credit card by the 1 & 2^nd opposite parties during the pendency of the case and arbitrarily cancellation of the policy by the 1^st opposite party caused great mental agony and loss.   The complainant  is claiming a sum for Rs.50,000/- for such deficiency in service and unfair trade practice.

In

2007 (1) CPR 336 (NC)

NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION, NEW DELHI

Between

J.P. Sharma

-Versus-

ICICI Bank Ltd.

 

Held that

“Consumer Protection Act, 1986 – Sections 2(1)(g) and 21 (b) – Case of indirect deficiency in service – ICICI Bank card used in HSBC Bank ATM not processed – HSBC Bank sent incorrect advice – ICICI Bank debited – When mistake discovered, credited – District Forum granted compensation of Rs.8,000/- and cost of Rs.12,000/-”.

7.     The learned Counsel for the 1^st opposite party contended that, the complainant availed a Group Insurance Policy provided to the credit card holders of the 2^nd opposite party.  But admittedly, the 1^st opposite party provided medical policy to the complainant.   Further the contention of the 1^st opposite party is that, the cancellation of SBI card has not been intimated to the 1^st opposite party either by the complainant or by the 2^nd opposite party.  As per the facilities availed by the complainant, the 1^st opposite party claimed the premium amount from the credit card of the 2^nd opposite party and was duly collected.   Hence the cheque issued by the complainant was rightly returned without collection.   But it is not denied that the 1^st opposite party accepted the cheque No.688202 dated:02.06.2005 drawn  on Canara Bank towards the premium for the year 2005.  Further the contention of the 1^st opposite party is that, on the instruction of the complainant, during the course of pendency of the case, the policy was cancelled.  But the 1^st opposite party has not produced any document to prove such instruction for cancellation.   Hence it is crystal clear that the opposite parties had committed deficiency in service. Considering the facts and circumstances of the case this Forum is of the considered view that the opposite parties shall pay a sum of Rs.10,000/- towards compensation for deficiency in service  with cost of Rs.3,000/- to the complainant.

  In the result, this complaint is allowed in part.  The opposite parties 1 & 2 are jointly and severally liable to pay a sum of Rs.10,000/- (Rupees ten thousand only) towards compensation for mental agony with cost of Rs.3,000/- (Rupees three thousand only) to the complainant.

The above amounts shall be payablewithin 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 Steno-typist, taken down, transcribed and computerized by her, corrected by the President and pronounced by us in the open Forum on this the 04^th  day of June 2018. 

 

MEMBER –I                                                                      PRESIDENT

COMPLAINANT SIDE DOCUMENTS:

Ex.A1	03.12.2004	Copy of the letter of the 2nd opposite party
Ex.A2	06.06.2005	Copy of the receipt issued by the 1st opposite party
Ex.A3	28.04.2006	Copy of the renewal of policy along with the cheque
Ex.A4	21.06.2006	Copy of SBI Card Statement
Ex.A5	04.07.2006	Copy of the letter from the 2nd opposite party
Ex.A6	25.07.2006	Copy of the notice issued by the complainant
Ex.A7		Copy of the acknowledgment card from the 1st opposite party
Ex.A8		Copy of the acknowledgement card from the 2nd opposite party
Ex.A9	21.01.2007	Copy of cancellation letter
Ex.A10	30.01.2007	Copy of Fax message
Ex.A11	09.02.2007	Copy of protest letter

 

1^ST OPPOSITE  PARTY SIDE DOCUMENTS:  NIL

 

MEMBER –I                                                                      PRESIDENT