Consumer Protection Act
Consumers are considered an integral part of the world of business. Consumers are the ones who create
demand in the market and due to which in the circulation of money.
Consumers are considered as a person who purchases goods and services for personal use .as the market
is growing so is corruption, there was a time when consumers were exploited. They were either charged
more or the quality of the product and service was not up to the mark.
The world economic forum has declared that by 2030 with a GDP growth rate of 7.6%, India has a big
chance to become the 3 rd largest consumer market to protect a market India has many consumer laws and
one of which is the consumer protection act 1986, later on, this act was replaced by the consumer
protection act 2019. This act was passed in the assembly in October 1986 and came into force on
December 24, 1986.
This act was implemented to protect consumer rights, it is considered as a part of the law of torts, which
means filing a civil suit for damages against the shopkeeper or the service provider. This act is based on
the doctrine of caveat emptor, which means, the responsibility of the buyer to identify the defects in the
This act does specify who is considered as the consumer in section 2(1)(d). this act also mentions the
various rights of the consumer such as the right to safety, right to information, right to choose, right to be
heard, right to redressal, and right to consumer education
Case; Manjeet Singh v. National Insurance Company LTD. &Anr, in this case, the appellant hired a
second-hand truck. This vehicle was insured by the respondent company. The appellant in his kindness
gave a passenger lift after that he was assaulted and fled with the vehicle. The appellant asked for
insurance. It was held by the supreme court that it wasn't the appellant's fault. It can't be considered a
breach of any policy. Therefore the court was directed to pay the compensation to the appellant.
Case; National Insurance Company LTD. V. Hindustan Safety Glass Works Ltd. & Anr
In this case, the insurance company has refused to compensate the respondent because of damage caused
due to heavy rain during the mentioned period. The insurance company admittedly denied relief to the
insured as the conditions of the policy mentioned that the company wouldn't be liable for the loss or
damages that occurred 12 months after the event of loss to be insured.
It was held by the national commission that the claim made by the insured is actionable. It was also
observed that the goods were insured at the time of the incident and he asked for the claim the next day it
was also viewed that the company should be liable for the compensation.