Srinagar, Feb 14: The District Consumer Disputes Redressal Commission (DCDRC) Baramulla/Bandipora on Wednesday directed National Insurance Company Limited to pay Rs 6 lakh in favour of the 2005 earthquake victims for deficiency of service and unfair trade practice, after 17 years.
The judgment mandates the company to pay a sum of Rs. 6 lakhs towards the complainants along with an interest of 10% from the date of filing the complaint within 4 weeks' time.
The judgment also directed the insurance company to pay Rs. 50 thousand towards the complainant for causing mental and physical harassment and litigation charges, an official spokesman said.
The judgment was given in response to a complaint lodged with the erstwhile State Consumer Protection Commission Jammu on March 27, 2006, by the residents of Usman Colony, Khawaja Bagh, whose house sustained damage in the earthquake that occurred on October 8, 2005 and was left uninhabitable.
The property in question was insured by National Insurance Company Limited for a sum of Rs.13 lakhs against such eventualities but the company failed to fulfill its contractual obligation to compensate the complainants for the incurred losses.
The judgment passed by the bench presided by the President DCDRC Baramulla, Peerzada Qousar Hussain and other Member Judge, Nyla Yaseen found the insurance company guilty of unfair trade practices under section 12 of consumer Protection Act 1985, and hence directed them to compensate the complainant according to the set terms within 4 weeks time.
