Can credit card company buy insurance policy on my name without written consent?

POSTED BY Himadri Das ON April 24, 2013 10:34 am COMMENTS (9)

I had a credit card with Standard Chartered Bank. Bank purchased 5 No insurance policies on my name without my written consent. Asking bank about this, they informed me that they have taken my voice consent before purchasing the policies!!! I have given emails to cancel the policies, but received no positive reply from bank. My question is: Can Credit card company purchase insurance policy on my name without my written consent?

9 replies on this article “Can credit card company buy insurance policy on my name without written consent?”

  1. Dear Himadri, what about the prem. amount of cancelled policies? Not paying the amount is not a solution. Instead of that, pay the amount, cancel the card & then fight out for your case.



  2. Himadri Das says:

    Dear Mr. Ashal,

    4 policies SC purchased on my name from Royal Sundaram. These policies were medical/health insurance policies. Out of these 4, I personally followed up with Royal Sundaram & request for cancelling those policies. Cancellation letter of 2 Policies I received directly Royal Sundaram .For balance 2, i received no cancellation confirmation either from Royal Sundaram or from SC. While I asked for cancelling my credit card, they charged entire policy amount (for all 4 Policies) whcih I denied to pay.

    1 no policy is something called Card enhancement package. I never requested for the same to SC. After receiving this kit, I returned it to SC’s B’lore office as per their guideline for cancellation. But very surprisingly after 6 months they informed me that they have not received the kit. they will cancel my credit card only if I pay entire amount of this Enhancement package. I once again denied to pay.

    Finally what SC have done is that they have complained against my name in CIBIL & my present CIBIL score is only 578 because of that.

    I have never given any written consent to purchase any of the policies but wrote several mails to SC to cancel all the policies.



  3. Dear Himadri, what are these 5 policies ‘ll be my first question to you? also indicate where are the policy bonds as of now? In your possession or with S&C?

    Please elaborate.



  4. Ayush says:

    @Himadri Das try contacting They look after consumer complaints. May be that will help.

  5. Himadri Das says:

    Dear Sir,

    Once again thx a lot for your reply. I am not sure about the voice consent (whether I have given or not), but I have written several mails to them requesting cancellation of the policies. Also I mentioned in my mails that I am ready to pay 25% of the premium amount, kindly cancel them, but still they did not cancel the policies.

    One side they are claiming for my voice consent & other side I have given several emails for canceling those policies (written consent), in this case what bank should have been followed? in case I go to consumer court, can I get decision in my favor?

    1. “Cancellation” of policy usually means premiums will not be reimbursed. 100% or 75% as you want.

      If you have the policy documents, read it carefully. You need to talk to the card issuing authorities face to face.

      Consult an advocate if you want to go consumer court. I am not a legal expert but the way way I see it if you are not sure about voice consent then the only way is to loose 100% premiums.

      You can also send a mail to moneylife magazine and seek their help. They can also guide you.

  6. Himadri Das says:

    Dear Sir,
    Thanks a lot for your reply. But in case they have any voice consent then how can it be proved that it is my voice consent?? I am asking bcoz during the issue of credit card they have taken all my details (like DOB, Mother’s name etc..). So it is very easy for them to create a false voice consent..

    1. I don’t think they will do it. If a customer complains to IRDA if such a thing happens then the
      consequences for the company will be severe.

      If you are sure you did not give consent then the policy should not have been issued. My wife gets such calls now and then. She clearly says no and that is the end of it.

      So if you did not give voice consent, go to the bank with a written complaint (plus a copy) submit the original and get the copy stamped from that as proof that you submitted.
      In the letter threaten them that you will complain to IRDA.

      If you are not sure if you gave consent or not then go to the bank, write a letter and cancel the policies. In this case you are likely to lose the first premium.

  7. The question to ask is did you give your voice consent? If yes, then they are within their rights to bill your card and issue the policy for your signature. In this case you have only yourself to blame.

    If no then visit the the bank and give a written statement with a threat that you will complain to IRDA

    In any case visit the bank to get this cancelled.

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