#insurance claim dispute

The West Bengal State Consumer Commission ruled that compensation for deficiency in service must be proportionate to the actual claim amount. In this case, an award of Rs.2 lakh for a Rs.9,683 deficiency was deemed excessive and reduced, reinforcing that punitive damages cannot exceed the harm suffered. This sets a precedent for rationalizing compensation in consumer disputes under the Consumer Protection Act.

Delhi State Consumer Commission reaffirms that under the Consumer Protection Act 1986, territorial jurisdiction is determined by the location where the cause of action arises, not merely the presence of a branch office. Insurers and service providers must ensure compliance to avoid dismissal of complaints on jurisdictional grounds.