Consumers Welfare Association & Shri. Kersi J Divecha ...
Complainant
Bank of India & National Insurance Co. Ltd. ...
Opposite Parties
Shri Divecha the Complainant and a Credit Card Holder of the Bank of India was offered a Mediclaim Policy under the Group Insurance Scheme serviced by National Insurance Co. Ltd.
The grievance of Mr. Divecha was that the premium of Rs.9164/- paid by him for the year ending (y/e )31.12.2011 was unfairly hiked to Rs.18,329/- (100%) for y/e 31.12.2012 and further to Rs.25,160/- for the y/e 2013 which was a deficiency in service and unfair practice under the Act.
Shri M.P. Kasar, Hon’ble Member of the Bench of Smt. Sneha S. Mhatre Hon’be President & Shri D.DS. Paradkar Hon’ble Member after hearing the parties ruled that the Bank of India as the Manager of the Group of Credit Card Holders failed to act as per the Guidelines of the Insurance Regulatory & Development Authority (IRDA) vide their letter Ref.015/IRDA/Life/Circular/GI Guidelines/2005dt.14.07/2005 regarding Group Insurance Administration that “neither of the Opposite Parties have the liberty to vary the premium or benefits with regard to the individual members of the group”
Hence the Hon’ble Forum concluded that, hiking the premium amount by violating the law and without following the due procedure towards Complainant was arbitrary, deficiency in service and unfair business practice of the Opposite Parties.
Accordingly the Opposite Parties were directed to reimburse Shri Divecha the amount of Rs.25,159/- with interest from the date of filed complaint + punitive damages of Rs.5000/- + cost Rs.5000/-
A.M. Mascarenhas
Secretary, CWA