Think twice before you accept free mediclaim offer for being a valuable credit card holder. If you  bite the bait, you may end up not just paying for the mediclaim but also running around to get back your money

The Consumer Disputes Redressal Commission, Gujarat State, dismissed the appeal against the order of the Ahmedabad City Forum, holding Healthcops ICICI Lombard General Insurance Ltd and ICICI Bank liable for deficiency in service in a complaint filed by Consumer Education and Research Society (CERS), Ahmedabad, and Deepak Khatwani, a customer of ICICI Bank.  
 
The Forum, by its award dated 30 December 2011, had directed ICICI Lombard General Insurance to credit to Mr Khatwani’s savings bank account Rs 19,049 within two months from the date of the order. The company should also pay him 7% interest on the amount from the date of its debit from his savings account to its credit to that account. The company shall also refund to him Rs2,210, illegally recovered from him, with 7% interest from the date of recovery until payment.
 
The Forum had also directed Healthcops ICICI Lombard General Insurance and ICICI Bank Credit Card Division, Ahmedabad, to pay Mr Khatwani Rs2,000 each for mental agony and Rs2,000 towards cost.
 
The complainants’ case was that ICICI Bank had issued a credit card to Mr Khatwani in February 2005. He used it occasionally, made regular payments and there had been no complaints up to February 2007.
 
On 16 February 2007, Mr Khatwani was telephonically informed that, he being “a valuable ICICI credit card holder, ICICI Lombard was offering him, through the bank, a healthcare policy free for two years, after which it would be chargeable. He accepted the offer and received a health policy from Healthcops ICICI Lombard. The policy mentioned, among other things, the sum insured as Rs3 lakh and the period of insurance from 22 February 2007 to 21 February 2008.
 
But, contrary to  the terms of the offer of two years’ free policy,  Mr Khatwani received an ICICI Credit Card statement dated 21 May 2007 from ICICI Bank  showing the total amount due as Rs2,728.55 and reflecting EMI interest, EMI principal, service tax and late payment fee.
 
Mr Khatwani wrote to Healthcops ICICI Lombard and ICICI Bank, requesting them to confirm that the policy was free for two years, clear his credit card bills or else cancel his health policy, and to clear his credit card dues. Subsequent to the request, the company cancelled the policy.
 
What followed this letter was a seemingly unending repetition of the opposite parties’ sending monthly statements and Mr Khatwani receiving and protesting them, as the “dues” mounted, inclusive of late payment fees, interest, etc.  
 
After a few months, Mr Khatwani started getting repeated phone calls, marked by an abusive, vulgar, uncultured language and threats of dire consequences and heavy penalty. Even an agent was sent to Mr Khatwani’s house in his absence and a female member in the house was made to pay Rs2210.
 
Mr Khatwani gave a legal notice to the opposite parties on 24 November 2007. Instead of replying to the notice, they issued monthly statements from November 2007 to February 2008, showing the total amount due as Rs17,117.40 (as per the February 2008 statement).
 
Mr Khatwani, then approached CERS which took up the matter with the opposite parties.
 
Meanwhile, ignoring Mr Khatwani’s legal notice, ICICI Bank slapped on him its notice on “unpaid outstanding dues of Rs17,117.40 in respect of his credit card. It called upon him to pay the amount within seven days. On failure to do so, the amount would be recovered from his savings account by exercising their right of banker’s lien.
 
Eventually, Mr Khatwani received a statement of transactions in his savings account for the period 1-30 April 2008, reflecting the withdrawal of Rs. 19,049.08 by debiting his savings account exercising the banker’s lien as threatened in the bank’s notice.
 
On 30 July 2008, CERS and Mr Khatwani had complained to the Forum.   
 
The Forum allowed the complainant on 30 December 2011 against which ICICI Lombard filed an appeal before the Consumer Disputes Redressal Commission, Ahmedabad. No such appeal was filed by Healthcops and ICICI Bank.