Credit Card with unsolicited Insurance under investigation

Most Banks and Financial Institutions in India, especially ICICI and its subsidiaries are involved in this malpractice of forcibly issuing an insurance policy with credit card to a consumer. The card company then debits the insurance premium account to your credit card without your consent. When the consumer disputes, the bank refuses to reverse the entry and puts the consumer into obligation of paying the amount due on his credit card and then lodge a complaint.

Several consumers raised their voice by writing to IRDA [Insurance Regulator in India] and have managed to get attention as IRDA has said,

Authority is in receipt of several complaints citing instances of policies being issued without collecting a proposal form in terms of section 4(1) or where a prposal form is not used, without confirming the information collected from proposers to them within 15 days of collecting the information either orally or in writing as required by section 4(4) of the regulation.

This is rampant with first time credit card accounts and companies have exploited consumers. We also further request IRDA to do away with all the ORAL consent mechanism as banks in India are not at all trustworthy.

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