Figure out the consumer relief conundrum

Make sure you don’t miss the deadlines to register complaints.

If you are not happy with the service provided by your bank or utility provider, you can always knock on the doors of justice. Consumers can have their grievances heard by the Ombudsman, National Company Law Tribunal, before approaching the consumer forum or civil courts as the last resort. However, there are several procedural conditions that must be adhered to while approaching these entities.

“Consumers are often late in registering their grievances. Knowing when and whom to approach is important,” says, Dr M S Kamat, Honorary Secretary, Consumer Guidance Society of India.

In case of any dispute, approaching the concerned company’s internal grievance cell or customer care cell with written complaints is always the first step. If one still needs to seek outside help, he can approach the respective banking and insurance ombudsman for issues such as delays in the payment of interest, non-payment of claims and so on. The National Company Law Tribunal (NCLT), or company law boards as they were popularly known, look into grievances where investors have not been paid interest on the company’s fixed deposits, or shareholders are not given dividends on time. Thereafter one could approach the consumer forum.

TIME-BOUND FILING
If the company rejects one’s complaints or does not respond, one needs to give it a month’s notice after which the ombudsman can be approached. However, even the ombudsman will only entertain cases that have been filed within a year of the complaint arising.

In case of delays in doing so, the only other option the customer has is to approach the consumer court. Here, cases need to be filed within two years.

“Accepting cases that have not been filed within the prescribed time limit will depend on the presiding officer’s discretion,” says consumer activist Jehangir Gai. If one were to file a suit in a civil court, it has to be done within three years of the dispute.

TYPES OF COMPLAINTS
The ombudsman is empowered to accept complaints only on an individual basis. The NCLT, on the other hand, may accept individual complaints but its orders are applicable to all deposit holders. Insurance companies cannot appeal against the ombudsman’s order.

The customer however, can go to the consumer forum, if dissatisfied with its order. Consumer forums are empowered to look at all kinds of issues, but the orders can be appealed by both parties and the final decision can take a long time.
 

WHOSE DOORS TO KNOCK
	Ombudsman	Consumer forums	National Company   Law Tribunal
For grievances  related to	Banking and insurance	Products and services	Corporate fixed deposits, dividends, etc
When	Within a year of the  complaint arising	Within two years of the complaint arising	As early as possible
Amounts for  which orders  can be issued	Banking grievances  up to Rs 10 lakh Insurance grievances up to Rs 20 lakh	Up to Rs 20 lakh - by the district level consumer forums  Rs 20 lakh-Rs 1 crore by the state  level consumer forums

Rs 1 crore and above by the 
national level consumer forums

Not Need for appealConsumer courtThe next higher consumer court
or 
The Supreme Court if the case 
was being heard at the national 
level consumer forum Appellate tribunal

DISPUTED AMOUNTS
The amount under dispute is also an important consideration while deciding whom to approach. Those who are disputing claim amounts up to Rs 20 lakh can approach the insurance ombudsman or the consumer forum.

But, an ombudsman’s orders are restricted for amounts up to Rs 20 lakh. For anything more, one has to approach the consumer courts. Even here, there are several demarcations between the district, state and national level consumer forums (see box).

An ombudsman generally issues orders as per the policy rules. However, a favourable judgment from a consumer court could see you getting the claimed amount with interest as well as the compensation amount for the harassment suffered.

In case of disputes with utility service providers, some forums ask customers to keep aside the disputed amount with it, just to prove one’s bonafide. The amount is invested and earns an interest. The total amount is then awarded to the person in whose favour the judgment is passed.