IMPORTANT POINT
Deceased having insurance cover, when he issued credit cards, it is liability of petitioner as well respondent-bank, to indemnify complainant.

V.B. Gupta, Presiding Member—Petitioner / Opposite Party No.2 has preferred this revision against impugned order dated 24.09.2007, passed by Karnataka, State Consumer Disputes Redressal Commission, Bangalore (for short, ‘State Commission’) vide which Appeal No.2301 of 2006, filed by petitioner was dismissed.

2. Brief facts are, that Ashwin George S/o Respondent No.2 and 3 / Complainants was holder of two Credit Cards issued by Respondent No.1/Opposite Party No.1 bearing Nos. 4550 3893 8908 6003 & 4500 3877 5530 9009. Ashwin George met with an accidental death on 06.02.2005 at Airport Road near ASMT Bangalore. In that connection, concerned Police registered UDR No.1/2005. The Cardholders of respondent no.1 were insured with the petitioner company. Respondents no.2 and 3 gave application on 30.03.2005, to respondent no.1 requesting them to settle the claim in respect of death of Ashwin George pertaining to above Credit Cards. However, respondent no.1 did not respond. Hence, respondents no.2 and 3 filed consumer complaint against petitioner and respondent no.1, seeking compensation of Rs.Three lakhs each, in respect of two Credit-Cards of Ashwin George and cost of this litigation.

3. Respondent no.1, in its version has stated that pursuant to the request of Ashwin George, Credit Cards referred to in the complaint were issued to him by them. As part and parcel of the benefits and facilities attached to the credit cards, all cardholders are automatically covered by a Group Insurance Policy issued by Petitioner Company. The insurance cover is so provided without collecting cost in that regard and premium in respect of cards is paid for by them and insurance coverage is provided by the said Insurance Company. Apart from automatic free insurance cover available to the cardholders, respondent no.1 has also offered access to a separate Suraksha Insurance Policy issued by Tata Aig Life Insurance Company Limited and Royal Sundaram Alliance Insurance Company Limited, which is a policy to be specifically opted for by the Cardholder for which, premium has to be paid by the Cardholder by way of debit to the Credit Card effected by respondent no.1 and credited to the concerned Insurance Company. Respondent no.1 is only a banking company and not authorized under law to offer insurance services. Under the Citi Bank Card Membership Agreement, entered in between the cardholder and respondent no.1, it is specifically stipulated and acknowledged by the Card holder, that respondent no.1 will not be liable in any manner whatsoever for any insurance cover provided and the concerned Insurance Company will be solely liable. It is further stipulated in the said agreement, that if card holder does defaults in the payment of monthly dues in respect of the use of the credit card, all benefits and facilities associated with the credit-card would stand suspended/denied to the card holder and the card holder will not be entitled to any such benefit or facility. As on February 2005, a sum of Rs. 8,561.69 paise was due in respect of Credit-Card bearing No.4550 3893 3890 8603. On receipt of information of the death of the Cardholder, respondent no.1 immediately reversed the renewal fee and the service charges, that had been billed to the Credit Card. Accordingly, a sum of Rs. 8,153.05 remained due and payable to respondent no.1. Since no payment was made, late payment charges continued to accrue thereon. As on December 2005, a total sum of Rs. 14,856.17 remained due and payable in respect of the said Credit Card to respondent no.1. On receipt of information as to the death of the Card holder, the Credit Card was closed but payment due was not made. As regards the insurance cover provided by petitioner is concerned, in response to complainants’ letter dated 30.03.2005, respondent no.1 informed them that they were not aware of any specific Insurance Policy in respect of the said Credit Cards and requested complainants to directly contact the Insurance Company f