FA.No.677/2008 against CC.No.429/2007 District Consumer Forum-II, Hyderabad.

Between-

1.United India Insurance Co.Ltd.

   United Towers, Basheerbagh,

   Rep. by its Regional Manager,

   Hyderabad.

2.United India Insurance Co. Ltd.

   The Divisional Office IV,

   No,609, Anna Salai,  Lakshmi Bhavan,

   3^rd Floor, Chennai, 600 006.

…Appellants/O.P.No.2 and 3.

And

1.Smt.G.Ashwatha,   at the rate of Aswatha Lakshmi,

   W/o.late G.Muralidhar,

   R/o.H.No.1-88/2/4, Taranagar,

   Serilingampally, RR District,

   Hyderabad – 500 019.

…R.1/Complainant.

2.M/s.HDFC Bank,

   Rep. by its Manager,

   Credit Cards Division,

   Prince Kushal Towers, 96, Annasalai,

   Chennai.

…R.2/O.P.No.1.

Counsel for the Appellants         -      Mr.Ravishankar Jandhyala.

Counsel for the Respondents     -      Admn.Stage.

QUORUM- THE HON’BLE MR.JUSTICE D.APPA RAO, PRESIDENT,

SMT.M.SHREESHA,HON’BLE LADY MEMBER,

AND

SRI G. BHOOPATHI REDDY, HON’BLE MALE MEMBER.

TUESDAY, THE TWENTY FOURTH DAY OF JUNE,

TWO THOUSAND EIGHT.

Oral Order (Per Hon’ble Mr.Justice D.Appa Rao, President)

-------

            Heard the learned counsel for the appellants and the complainant.

1.         This is an appeal preferred by the 2^nd and 3^rd opposite parties against the order of the District Consumer Forum-II, Hyderabad, dated 24.04.2008 in CC.No.429/2007 directing them to pay an amount of Rs.5,00,000/- besides compensation of Rs.5,000/- and costs of Rs.1,000/-. 

2.         Complainant is the wife of one G.Muralidhar, who had obtained a credit card from the HDFC Bank , the second respondent herein.  Under the said card, he was entitled to personal accident insurance coverage of Rs.5,00,000/-.  While so, on 29^th/30^th May, 2006 night the deceased met with an accident and died in the Government Hospital, Zaheerabad.  Based on the report, the police registered a case.  On that the claimant sent the claim form requesting the Insurance Company to pay the policy amount enclosing the FIR, Post Mortem certificate, Death certificate, newspaper clipping, etc. 

3.         The Bank, the 2^nd respondent herein did not choose to contest the matter.  The Insurance Company, the appellant herein resisted the case while admitting the issuance of credit card alleged that the deceased did not use the card. When it asked for the accounts statement showing the first and last entry in order to show that the credit card was used, the complainant failed to furnish the same.  Since there was no usage of credit card, the complainant was not entitled to any amount.  Therefore, it prayed for dismissal of the complaint.

4.         The complainant in proof of his case filed her affidavit and documents, Exs.A.1 to A.9, while the opposite parties filed Ex.B.1, the terms of the policy.    The District Forum after considering the fact that the credit card hold was entitled to an amount of Rs.5,00,000/-, which was covered under the personal accident policy, awarded Rs.5,00,000/- besides compensation of Rs.5,000/- towards mental agony and costs of Rs.1,000/-.

5.         Aggrieved by the said order, the Insurance Company preferred this appeal contending that the credit card was never utilized and production of the statement of account is a pre condition for processing the claim.  Therefore, it prayed that the appeal be allowed. 

6.         The point that arises for consideration is whether the Insurance Company is not liable to pay the amount covered under the personal accident policy?

7.         It is not in dispute that the complainant’s husband G.Murlaidhar had obtained a credit card under Gold Card category.  It is also not in dispute that the gold credit card holder was entitled for personal accident insurance coverage of Rs.5,00,000/-.  This card was issued by HDFC bank, the 2^nd respondent herein.  Naturally when the Bank had issued such a card, the Insurance Company having been satisfied that all the conditions of the policy were fulfilled. 

8.         It is not in dispute that G.Muralidhar, the credit card holder died in a motor vehicle accident that took place on 29^th/30^th May, 2006 night, by the date the policy was in force.  The fact of the death of G.Muralidhar was not in dispute, evidenced from Exs.A.7, A.8 and A.9 reports. 

9.         The learned counsel for the appellants contended that since the credit card was not put in usage, he was not entitled to any compensation.  We are unable to accede to the contention in view of the fact that we could not see such a pre condition for payment of the policy amount.  We believe that ……………………the policy is issued and that too when the Insurance Company having satisfied issued the gold credit card, which has a personal accident benefit.  If an accident took place immediately on its issuance he was entitled to the amount covered under the policy.  On that score, the complainant could not be denied the amount covered under the policy.  We have perused the entire evidence in this case and we do not find any irregularity or error in the order passed by the District Forum.  We do not see any merits in the appeal.

10.       In the result, the appeal is dismissed with costs of Rs.1,000/-.  Time for compliance four weeks.   

PRESIDENT              LADY MEMBER         MALE MEMBER

Dt-24.06.2008.

Vvr.