[Resolved]  mediclaim policy — cheque return without any reason

SUB: Check Return with Memo - Balance Insufficient.

REF: Mediclaim Policy and personal accident policy.

Dear Sir,
With reference to above submitted as under:-
1. I issued a cheque no. 528478 dated 12/12/2009 (State Bank of Indore) of Rs. 5003/- in favour of National Insurance Company Ltd, for renewal of my Mediclaim Policy and Personal Accident Policy.
2. That, the National Insurance Company has to renew the policy and then is to issue a renewed policy on[protected] vide No. 320100/48/09/[protected] (Mediclaim) & 320100/42/09/[protected] (Personal Accident). In context with above, the NIC deposited the said cheque of Rs. 5003/- for clearance in Bank of Baroda, but it appears that Cheque no. 528478 was returned on[protected] with Memo endorsement - “Today's opening balance insufficient”.
3. That, All of a sudden, I received a letter dated[protected] from National Insurance Company Ltd, with the following notice – “payment of premium against policy No. 320100/48/09/[protected] & 320100/42/09/[protected] dated[protected] vide cheque no. 528478 dated 12/12/2009 drawn on (Bank) State Bank of Indore for amount of Rs. 5003/- has been returned to us uncleared for reasons given hereunder as advised by the Bank :- “INSUFFICIENT FUND” and note that the earlier policy/collection stands cancelled since inception and we are not on risk in respect of the earlier policy.”
4. That, after getting the notice, I was shocked, as my balance is well above the limits. I then, immediately contacted the SBI Asst. Branch Manager, but even he too would not clarify this return of cheque, to me. Thereafter, I contacted NIC, Indore, they then notified me that your policy is cancelled and you will not be able to get the benefits of this policy anymore. Then, they told me to deposit the Amount of Rs. 5003/- with a penalty of Rs. 100/-, that accounted Rs. 5103/-, immediately else bonus of Rs.52,000/- (apprx.) will be lost and I’ll be deprived of the benefits of the mediclaim policy. So, I immediately deposited the aforesaid amount in cash dt. 23/12/09 and then a new policy was issued on the following date.
5. That, as per the Bank Account Statement enclosed herewith, there was enough balance in my Bank Account, from dt. 12/12/09 to 23/12/09, to complete the transaction. So, there was no reason to return the cheque.
6. That, the above incident caused a lot of mental harassment to me, and also costs me one working day, and if that was not enough my policy was also cancelled for a period of 15/12/09 - 23/12/09 ( 8 days), and this type of incidents is disgraceful for a prestigious Bank like you.
7. That, Despite of the fact that my account was up-to-date, my cheque was bounced due to irresponsible behavior of the Bank. And, I want a compensation regarding this incident, as it caused me a lot of mental pain agony and harassment of Rs. 5,000/- and the penalty of Rs.100/-and loss of one working day i.e. Rs. 500/-., i.e. A Total Sum of Rs. 5,600/-

It is therefore, call upon you to pay the amount as described above me about the situation or else I’ll be bound to do some Legal Action against you.


Mahesh Vishwakarma