SC to decide if insurance for business use is consumer matter

NEW DELHI: The Supreme Court (SC) will
decide whether or not coverage services availed by commercial establishments
qualify for redressal under the Consumer Protection Act, 1986. A
bench headed by Justice Type B Normality Agarwal have admitted two entreaties that brought to the
fore, contradictory judgments delivered by the National Consumer Disputes
Redressal Committee on treatment of coverage services. The issue
before the tribunal is whether or not concern houses, which help of insurance
services, can seek alleviation as a consumer. National Insurance Company
had moved the vertex tribunal in March 2005 seeking intervention followers divergent
views on the issue from the National Consumers Disputes Redressal
Commission. According to the coverage company, the Committee in a
batch of petitions, including that of Cherished Plasto Packaging Private Ltd and
Harsolia Motors, had held that the insured, who had taken the coverage policy
for commercial purposes, was not a consumer after amendment of the 1986 Act,
which came into the consequence from March 15, 2003. The Committee in
December 2004 had held that the individual who takes the coverage policy to cover
risks makes not take the policy for commercial intent or to bring forth profits,
the coverage company stated.