CITIBANK N A Vs. G JAYANTI

JUDGEMENT

(1.) - This is an appeal against the order of State Commission, Tamil Nadu at Madras dated 1st September, 1993 in Opposite Party No. 506/92. The Citibank N.A., Citi Bank Cards Division, Dinners Club is the Appellant and Mrs. G. Jayanti wife of the late Gollapudi Srinivas is the Respondent herein. The Respondent is the widow of the late Shri Gollapudi Srinivas who was issued with a Dinners Club Citibank Card bearing No. 36559014010105 by the Appellant herein. The card carried a facility of insurance for a sum of Rs. 5.00 lakhs in the event of death of the card holder by accident. Unfortunately, Shri Gollapudi Srinivas died in an accident on 12.8.92 while shooting a film. His wife Mrs. G. Jayanti wrote to the Citibank for processing the case for payment of the insured amount of Rs. 5.00 lakhs as part of the terms and conditions of the Dinners Club credit card given to her later husband. It is her contention that this insurance cover was available to the Complainant's husband from April 1991 to April 1993 and it was during this period that her husband died in an accident. On the other hand, the contention of the Citibank is that once the credit facility had been withdrawn, the other attendant facilities also stood withdrawn simultaneously, as in the event of suspension of the membership, no facility could be deemed to be in force. Hence, they informed the Insurance Company that the insurance cover for late Shri Gollapudi Srinivas will not be enforceable w.e.f. 30.6.92 which is earlier than the date of death viz. 12th August 1992.

(2.) The State Commission, Tamilnadu after going through the record and hearing the parties came to the view that the contention of the Appellant herein regarding the withdrawal of the insurance cover with effect from 30th June, 1992, in view of outstanding dues not being cleared by the late Shri Gollapudi Srinivas is not legally correct and hence directed the Citibank to pay to Smt. G. Jayanti wife of the late Shri Gollapudi Srinivas, a sum of Rs. 5.00 lakhs, with interest at the rate of 18% per annum, from the date of the complaint, till the payment and also a compensation in the sum of Rs. 10,000/- alongwith costs of Rs. 2,000/- within one month from the date of receipt of the order.

(3.) We have heard the learned Counsel for both the parties and gone through the records. We find that in a communication from the Insurance Co., it has been clearly stated "at the request of the Insured M/s. Citibank we hereby inform that we had covered under our Group Personal Accident Policy No. 42710700 00441 Dinners Club Card No. 3655 9014 010105 against loss of life due to accident till 30.6.92 when the above card was attrited as per monthly statement from Citibank for the period from 21.6.92 to 20.7.92 and the balance premium was refunded to the Citibank. Hence it is therefore to be understood that the above card is not valid and no claims would be admissible after 30.6.92". The argument given on behalf of the Respondent and accepted by the Tamil Nadu State Commission is that what was withdrawn was a charge facility available to the card holder, and that too temporarily, which did not automatically imply the cancellation of the insurance facility. In support of this, an endorsement on the bill-dated 24.6.92 sent by the Citibank to Shri Gollapudi Srinivas has been cited. This endorsement reads: "as indicated earlier payment on your card account in overdue for five months. The charge facilities on your card are temporarily withdrawn. Please do not use your card(s). Please send your payment immediately if not already done. We will then be pleased to review your account for restoration of charge facilities". Similar endorsement also appears a month later on the bill dated 24.7.92.