ICICI Bank’s Refusal of Accident Insurance Claim - Banking Ombudsman
Regarding the denial of accidental insurance by ICICI Home Finance for a housing loan applicant (who died in an accident), victim's father is having a dispute with ICICI Since 2004. The victim died immediately after taking only the first installment of the loan. When his father approached the bank to refund the amount (without using it, with in one week), they advised him to submit insurance claim (National Insurance), telling that the victim was having coverage (they said that every applicant will be offered this cover free of cost). Victim’s father filed the same and got the acknowledgement from the authorized signatory of the ICICI Bank. They said with in 3 months the pledged property documents will be returned as the insurance amount will be adjusted with the outstanding amount.
But months passed. Victim’s father wrote number of reminders and met the bank officials. But there was no sign of settlement.
Meanwhile the recovery agents used to visit the house/phone up and threaten to pay back the loan. The ICICI Bank sent a legal notice after one year in the name of the deceased. This shows that they have not recognized the very fact that the applicant is no more alive.
Like this years passed. Victim’s father was writing letters in regd. post, but there was no reply/response from Bank.
After 3 years, so as to end this type of situation, I had gone to the Bank and met the top man and apprised the case. After a week, the Bank sent a letter informing that the claim is rejected as per the terms and conditions of the captioned policy.
As we do not have the copy of the policy we requested them to give a copy for appreciating the terms and conditions. But they never gave it even today.
Meanwhile, the bank filed a complaint on victims father (2nd applicant of loan) in February in Lok Adalat that he is defaulter. In the Lok Adalat, the victim's father explained the case and requested the Lok Adalat to get him the policy copy from Bank. Lok Adalat asked the Bank to submit a copy before April end 2008 and settle the case with mutual agreement. But even today they have not given.
Victim's father filed a complaint in Banking ombudsman, by explaining the case, including the Lok Adalat's episode. When ombudsman asked the ICICI Bank to respond, it gave a reply that the case is pending at Lok Adalat. Based on that the Ombudsman rejected our application under clause 9 (3)(d) of Banking Ombudsman Scheme 2006.
Immediately we wrote back to the Ombudsman that as the Bank failed to comply with directive of by Lok Adalat and the Lok Adalat made it clear that the Bank should only convince us by showing the policy copy, the case is no longer with Lok Adalat.By informing this to Lok Adalat we requested them intervene and do justice, there was no response.
Is the stand of Banking Ombudsman correct? At this background, can any body suggest us what to do next.
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