Consumer Dispute Redressal Commission 

#GS2 #Governance #SocialJustice

Context

  • A consumer court has ordered an insurance company to reimburse the amount of expenditure on medical treatment for lung cancer after the insurer refused to pay the claim saying the patient was addicted to smoking, which caused the disease.
  • Mr. Banerjee’s wife, Smita, challenged this in the Ahmedabad Consumer Dispute Redressal Commission together with Consumer Education and Research Centre.
  • The court ordered the company to pay ₹93,297 with 7% interest from the date of application.

Dispute redressal 

  • Under the The Consumer Protection Act, 1986 there is a 3-tier structure for speedy resolution of consumer disputes:    
    1. National Consumer Disputes Redressal Commission
    2. State Consumer Disputes Redressal Commission
    3. District Consumer Disputes Redressal Forum
  • These are quasi- judicial bodies.

Elegibility of Membership: 

  • District Forums are headed by those who are or has been or is eligible to be appointed as a District Judge 
  • State Commissions are headed by those who are or has been a Judge of High Court.

National Consumer Disputes Redressal Commission:

  • The National Consumer Disputes Redressal Commission (NCDRC) is a quasi-judicial commission. 
  • It was set up in 1988 under the Consumer Protection Act of 1986.
  • The commission is headed by a sitting or retired judge of the Supreme Court of India.
  • The Consumer Protection Act, 2019 created the Central Consumer Protection Authority (CCPA). It will promote, protect and enforce the rights of consumers.
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