SCB to pay compensation
The Coimbatore District Consumer Disputes Redressal Forum has directed the Standard Chartered Bank to pay compensation to the legal heir of a credit card holder for deficiency in service.P. Veerabadran, V. Vijayalakshmi and S. Jayalakshmi, the complainants in the case (father, mother and wife of deceased V.V. Saravanan) moved the forum stating that the bank refused to honour a commitment made towards accident insurance claim, which the deceased was entitled to.They said according to the card services directory, Saravanan was entitled to a personal accident insurance claim of Rs. 2.5 lakh.He was killed in a road accident on April 6, 2004. When the family members approached the bank, they were asked to prefer a claim with the Oriental Insurance Company Limited.The insurance company said that the bank had insured only for Rs. 50,000, hence the claim could not exceed the sum insured.The complainants approached the insurance ombudsman, Chennai, who held the bank responsible.
Considering the decision of the ombudsman the forum, presided by S.A. Sreeramulu, held the bank liable for the violation of the terms of contract and ordered it to pay Rs. 2.5 lakh with 12 per cent interest from the date of complaint – October 1, 2005, Rs. 10,000 towards mental agony and Rs. 2,000 towards the cost of litigation, before September 11.Failing which the complainant was entitled to take action against the bank under sections 25 and 27 of the Consumer Protection Act of 1986, the forum said.
