Anti-trust body MRTPC has issued a stern warning to ICICI Bank [Get Quote] for selling insurance policies to its credit card holders without their consent and has asked it to stop the practice.Acting on a complaint filed by one of its credit card and bank account holders to whom the bank sent an ICICI Lombard General policy without consent, MRTPC bench headed by Justice O P Dwivedi passed a cease and desist order and held it as an unfair trade practice to promote its business.
"The practice of issuing Lombard policy in the name of the complainant without his request or consent would clearly amount to adopting an unfair trade practice by the bank to promote its business," the bench said. "Accordingly, we direct the respondent to 'cease and desist' from adopting the same in future," it added.
The Commission's direction came on a complaint filed by one Leeladhar Pant, a holder of both credit card and savings account holder of the bank, to whom ICICI sent a group death insurance policy.
Later, the bank further directed him to pay Rs 460 for the ICICI Lombard policy for which he never opted. Pant made several requests to the bank to remove this cover but was not entertained and instead he was asked to pay Rs 13,000 for the policy.
Despite repeated request to send him a correct bill, ICICI Bank sent him another bill of Rs 34,000 and made an auto debit of Rs 5,600 from his saving account.
Feeling aggrieved, Pant approached the Commission requesting it to ask the bank to cancel the policy and return the amount deducted as charge for it. Interestingly, ICICI bank never bothered to appear before the commission except once. It did not even file replies to notices issued to it.
Meanwhile, the Commission found that all the documents filed by the complainant were genuine and decided to proceed further.
"In absence of any version or evidence to the contrary, we find no reason to disbelieve the deposition of the complaints contained in his affidavit," said the Commission and directed ICICI to cancel the policy issued to Pant and delete all debit entries made in his account for it.
The Commission also directed ICICI to file an affidavit for compliance of its order within six weeks and to issue fresh statement of account to Pant.
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