For the redressal of consumer grievances, the Consumer Protection Ac 2019 provides for setting up of a three-tier enforcement machinery. Identify the Redressal Agency Under The Consumer Protection Act.
“It has a jurisdiction to entertain complaints where value of goods and services paid as consideration exceeds one crore but does not exceed ten crore rupees.”

Question

Rishabh purchased a car for ₹ 8,00,000. He insured the car on the same day from Alex Insurance Company. Rishabh’s car was stolen in Kedwan while he was on vacation with his family. He promptly filed a First Information Report (FIR), informed the insurer and submitted all the required documents.
To Rishabh’s shock, the insurance company rejected his claim, alleging he had failed to take due care and had parked the car in an unsafe manner. Determined to challenge this, Rishabh wrote multiple letters to the insurance company, but the insurance company refused to pay the compensation.
Rishabh filed a case with District Commission. The District Commission was satisfied with the genuineness of the complaint and ordered the insurance company to pay a reasonable amount.
Identify and explain two consumer rights which have been exercised by Rishabh.

Answer 1

The Consumer Protection Act of 2019 implements a three-tiered consumer grievance redressal framework: District Commissions, State Commissions, and the National Commission. The jurisdiction of each commission is determined by the monetary value of the goods and services in a complaint.

The act specifies the following:

District Commission: Adjudicates matters with a value up to ₹1 crore.
State Commission: Handles disputes where the value ranges from over ₹1 crore up to ₹10 crore.
National Commission: Exercises jurisdiction over cases involving values exceeding ₹10 crore.

The scenario presented, where the value of goods and services exchanged exceeds ₹1 crore but does not surpass ₹10 crore, falls under the purview of the State Commission, making it the appropriate authority for the question posed.

The Correct Option is B

Solution and Explanation

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