NEW DELHI: Insurance
firms and PSUs had to face some tough time in 2012 from the consumer
fora which pulled up these entities for causing a rise in frivolous
litigation.
The apex consumer commission pulled up PSUs for
behaving 'penny-wise, pound-foolish' and spending more money in fighting
cases than they might have to pay to the claimants.
The
National Consumer Disputes Redressal Commission (NCDRC) made the
observation while pulling up Haryana Urban Development Authority (HUDA)
for "gross negligence, deliberate inaction and lack of bonafides" in
delaying by 204 days filing of a plea against a state consumer
commission's order.
The NCDRC also imposed a fine of Rs 50,000 on HUDA while blaming the
legal staff of the PSUs for not examining cases properly and forcing
litigants to approach courts, resulting in a rise in frivolous
litigation.
Apart from PSUs, the consumer fora made clear its displeasure with insurance firms -- private or state-run -- for denying rightful claims of consumers by asking the Centre to examine the issue and take action against the erring firms.
The fora had also asked the Union finance ministry to deal strictly with private insurance firms and consider cancelling their licences for harassing customers and illegally rejecting their claims.
State-run insurance company LIC was also not spared, with the Delhi State Consumer Commission saying that it has become the "richest" organisation in the country by rejecting rightful claims of insured under mediclaim policies on "flimsy" grounds.
Airlines, banks, auto majors, insurance firms, hospitals, food joints, manufacturers of electronic gadgets, government wings like Railways and postal department, none escaped the stringent scrutiny of consumer fora on complaints of their indulgence in unfair and deceptive trade practices.
Apart from PSUs, the consumer fora made clear its displeasure with insurance firms -- private or state-run -- for denying rightful claims of consumers by asking the Centre to examine the issue and take action against the erring firms.
The fora had also asked the Union finance ministry to deal strictly with private insurance firms and consider cancelling their licences for harassing customers and illegally rejecting their claims.
State-run insurance company LIC was also not spared, with the Delhi State Consumer Commission saying that it has become the "richest" organisation in the country by rejecting rightful claims of insured under mediclaim policies on "flimsy" grounds.
Airlines, banks, auto majors, insurance firms, hospitals, food joints, manufacturers of electronic gadgets, government wings like Railways and postal department, none escaped the stringent scrutiny of consumer fora on complaints of their indulgence in unfair and deceptive trade practices.
Source : http://timesofindia.indiatimes.com
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