Staff Reporter

COIMBATORE: The Coimbatore Consumer Cause has urged the Union Government to direct Indian Overseas Bank to transfer Rs. 1.52 crore, which the bank received as commission for providing personal accident insurance cover for its customers in 2008 and 2009, to the Prime Minister's relief fund.

Insurance cover

K. Kathirmathiyon, Secretary of the consumer body, has said in a release that the bank debited Rs. 10 and Rs. 9 from each customer in April 2008 and April 2009 respectively towards premium for personal accident insurance cover. The bank had debited Rs. 10.52 crore totally without obtaining written consent from the consumers. Information about the insurance cover was displayed only on the bank notice board.

The policy documents were not given to the customers. Hence, many customers were unaware of the insurance cover they had.

Mr. Kathirmathiyon said the consumer organisation had taken up the issue with the Reserve Bank of India (RBI), requested it to stop such unilateral deductions by banks from the customers and sought refund of the amount deducted.

The RBI had replied that the bank had stopped the scheme from April 1, 2010. However, he pointed out that the bank had re-credited the premium only to those who had objected to the debit.

The bank should re-credit the premium to all customers and should not retain the commission it had received, he said.