MRTPC notice to ICICI Bk on card insurance

ICICI Bank, the country's biggest private sector lender, along with its insurance arm, ICICI Lombard, has come under the scanner of fair trade practices body Monopolies and Restrictive Trade Practices Commission (MRTPC) for imposing "unfair and unjust" conditions on insurance cover for its credit card customers.

Admitting a report of its investigative unit, Director General of Investigations and Registration (DGIR), MRTPC has issued notice of enquiry against the two companies.

Both companies have been asked to file their replies within four weeks. Though the notice was issued last week (on March 11), ICICI Bank denied having received any such notice. "ICICI Bank is yet to receive any notice. As when we get it, the bank would reply appropriately," said an ICICI spokesperson.

In its investigation report, DGIR said that ICICI Bank had not conveyed certain terms and conditions related to the insurance cover to credit card customers while issuing the card, and they were only mentioned in the 'welcome kit booklet' sent to them.

While noting that some conditions are "unfair and unjust to consumers," DGIR said some customers were denied insurance claims on the ground that cards were not used two times within 90 days from the day of the accident.