Consumer Protection Matters, Indore

The chambers appear before the District Consumer Disputes Redressal Commission at Indore and the State Commission at Bhopal, for complainants and, on instructions from insurers, banks and service providers, in the defence of complaints.

Which forum hears a complaint

The Consumer Protection Act 2019 replaced the 1986 Act and revised the pecuniary limits. Jurisdiction is determined by the value of the goods or services paid as consideration, not by the amount of compensation claimed, which is a change from the earlier position and a frequent source of error.

• District Commission, Indore. Consideration up to the prescribed district limit.
• State Commission, Bhopal. Above the district limit and up to the state limit.
• National Commission. Above the state limit.

Territorial jurisdiction under Section 34(2) now also allows a complaint to be filed where the complainant resides or personally works for gain, which was not available under the earlier Act.

Limitation

A complaint must be filed within two years from the date on which the cause of action arose, under Section 69. Delay may be condoned where sufficient cause is shown, and the Commission must record its reasons. The cause of action in an insurance matter ordinarily arises on repudiation of the claim, not on the date of the loss.

What the Act covers

• Defect in goods and deficiency in service, the two central concepts
• Unfair trade practice and restrictive trade practice
• Unfair contracts, a category introduced by the 2019 Act
• Product liability under Chapter VI, against manufacturers, service providers and sellers
• Misleading advertisements, with the Central Consumer Protection Authority given power to act

Insurance claims

A large proportion of the consumer work at Indore concerns insurance: repudiation of a mediclaim, a motor own damage claim, a fire or burglary claim, or a life policy. The issues that recur are non disclosure of a material fact, breach of a policy condition, delay in intimation, and the extent to which the terms of the policy were brought to the notice of the insured. The chambers appear on these questions for insurers.

Appeals

An appeal from the District Commission lies to the State Commission under Section 41 within forty five days, and ordinarily requires deposit of fifty per cent of the amount ordered. An appeal from the State Commission lies to the National Commission under Section 51, and thereafter to the Supreme Court under Section 67 on the grounds the section permits.

Mediation

The 2019 Act introduced a mediation framework in Chapter V. At the first hearing, or at any later stage, the Commission may refer the matter to mediation where it appears there exist elements of a settlement. A settlement recorded in mediation is passed as an order of the Commission.

Frequently asked questions

What is the time limit for filing a consumer complaint?

Two years from the date on which the cause of action arose, under Section 69 of the Consumer Protection Act 2019. The Commission may entertain a complaint filed later if the complainant satisfies it that there was sufficient cause for the delay, and reasons for condoning it must be recorded.

How is it decided whether to file at Indore or Bhopal?

By the value of the goods or services paid as consideration, not by the compensation claimed. Matters up to the district pecuniary limit go to the District Commission at Indore. Above that and up to the state limit, to the State Commission at Bhopal. The 2019 Act also allows filing where the complainant resides or works for gain.

Can a complaint be filed against an insurance company for rejecting a claim?

Yes. Repudiation of a valid claim is treated as a deficiency in service. The cause of action ordinarily arises on the date of repudiation. The issues usually examined are whether a material fact was suppressed, whether a condition of the policy was breached, whether the breach was fundamental, and whether the terms relied upon were brought to the notice of the insured.

Is a lawyer necessary to file a consumer complaint?

No. The Act is designed to allow a consumer to appear in person, and there is no requirement of legal representation. In practice, matters involving insurance policies, banking documents, medical records or expert evidence are usually contested on both sides with representation, because the issues turn on the construction of documents.

What is the fee to file a consumer complaint?

The fee is prescribed by the Consumer Protection (Consumer Disputes Redressal Commissions) Rules 2020 and is graduated by the value of the goods or services. It is modest by comparison with civil court fee, which is computed on the value of the relief claimed.