Recently, on one of the most popular lawyer forums, our Consumer Rights Adviser responded to a query on the maximum amount of Compensation that can be expected from a Consumer Forum. The answer was well appreciated by the enquirer and other senior advocates.

A quick snippet of the query and response has been shared below for the benefits of our readers. Please feel free to share the article with others and help us in the spirit of legal empowerment to consumers.

Question: What is the maximum compensation from a consumer forum in lieu of alleged cheating by an insurance company?

Answer:I have examined your query considering the maximum importance of compensation that should be given by a Consumer Court in lieu of alleged Cheating by an Insurance Company. I would like to quote the following information for your reference with regards to the compensation that should be granted by a Consumer Court u/s 14 (1) (d) of the C.P.Act,1986:

1. Compensation means the ‘thing given as recompense’. In ordinary parlance, Compensation means giving something equivalent to the value of a thing or service or to make up for a loss, recompense, remuneration or pay
2. U/s 14 (1) (d) of Act,1986 compensation comprehends damages also
3. While quantifying damages, consumer courts should make an attempt to serve with justice so that compensation is given in an established case, which not only serves the purpose of recompensing the individual
4. The actual calculation of damage differs from case to case and depends on the facts and circumstances of each case. While compensating, a Consumer Court has to consider all relevant factors and compensation can be decided on the basis of agreed legal principles
5. Besides Compensation, interest can also be given on equitable grounds
6. It is established by the Hon’ble Supreme Court that under clause (d) of Sec. 14 (1) of the C.P.Act,1986, Compensation can be given to a consumer ONLY in respect of loss or injury suffered by the consumer due to negligence of the opposite party
7. It is decided by the Hon’ble National Commission that compensation is supposed to be awarded on the basis of actual facts and the complainant who is expecting to receive the compensation must have a rational relation with the Opposite Party who has caused physical and mental inconvenience in the nature of damage to some extent by any kind of negligence, action or omission.

We feel that understanding the legal intricacies and being ready with supporting documents is a great step in the area of legal empowerment. We hope that the article empowers you with your rights. If you have any more query, or would like to lodge a complaint against any cheating individual/company, please feel free to reach to us at www.powertoconsumer.in

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