IMPORTANT POINT
Credit Card insurance is not admissible when Card is in inactive state.

P.N. Kashalkar, Presiding Member—This appeal has been filed by the original Opponent No.2 against the award passed by the District Consumer Disputes Redressal Forum, Central Mumbai, in Consumer Complaint No.31/2004 decided on 31.3.2008. While allowing the complaint partly, the Forum directed original Opponent No.2 Royal Sundaram Aliance Insurance Co. Ltd. to pay to the Complainant amount equivalent to US$-600 with interest @9% per annum from 1.5.2003 till actual payment is made and also directed to pay Rs.5,000 for mental harassment and Rs.3,000 towards costs. Aggrieved by the said order, original Opponent No.2 Insurance Company has filed this appeal.

2. Facts to the extent material may be stated as under:

The Complainant had been given Gold Credit Card of Standard Chartered Bank, Lower Parel, Mumbai. Said Credit Card was to expire on June, 2004. While issuing Credit Card of Standard Chartered Bank a booklet was given to the Complainant and it mentioned that while undertaking inland or international travel if the card holder loses his checked in baggage that baggage would be covered for insurance claim. The Complainant Shri Ajay Shrikrishna Jindal, had on 1st May, 2003 undertaken travel from Mumbai to Zurich via London by British Airways and at Zurich Airport he found that his one bag was missing. He brought this fact to the Airport authorities at Zurich. Thereafter, he lodged insurance claim with Opponent No.2 Royal Sundaram Aliance Insurance Co. Ltd. for missing valuables from the said lost bag. The British Airways paid him US$ 600 as per International Baggage Settlement Regulation. The Complainant was holder of American Express and United Insurance Credit Card. They had also paid US$ 500 for the lost bag. The Complainant had submitted claim with Royal Sundaram Aliance Insurance Co. Ltd. on 1.8.2003. The Royal Sundaram Aliance Insurance Co. Ltd. by letter informed him that his credit card was inactive w.e.f. 1.5.2003 and therefore claim was rejected. Likewise it was further informed that, w.e.f. 1.10.2002 as per amended rules regarding claim, 90 days user of credit card preceding the loss of bag was essential prerequisite for lodging the claim and since he had not used the said credit card for 90 days nothing was payable to the Complainant. Complainant had therefore filed consumer complaint claiming amount of Rs. 2,02,920 for the loss of bag as well as articles kept therein during international air travel.

3. Opponent No.1 filed written version and pleaded that it had provided policy to the credit holders only through Opponent No.2, the insurance Company and for repudiation of the claim the Opponent No.2 had given satisfactory reply. Hence, Opponent No.1 Standard Chartered Bank claimed that they are not responsible for the payment or non-payment of insurance dues by the Opponent No.2 Company.

4. Opponent No.2 filed written version and pleaded that while renewing the policy every year some new terms are already incorporated. Likewise, when latest policy was issued in favour of Standard Chartered Bank they had incorporated a condition that Card holder should have used the credit card within 90 days immediately preceding from the date of filing of claim by any card holder. The Complainant had not used the said credit card for 90 days before the claim and therefore, Insurance Company pleaded that it was not responsible for the payment of the claim lodged by the Complainant.

5. The Forum, however, considering the affidavits and documents placed on record held that the Opponent No.2 Insurance Company had repudiated the claim on wrong grounds. The Opponent No.2 had not informed the Complainant that w.e.f. 1.10.2002 amended rules were in force in respect of policy purchased by Standard Chartered Bank. The Forum also noted that said credit card had been used in June, 2003 for making purchase and on 15.7.2003 by cheque some amount was deposited in the credit card account and therefore, the Forum held that credit card of the