The National Consumer Disputes Redressal Commission, presided by Subhash Chandra(member) and AVM J. Rajendra AVSM VSM(member), held Oriental Insurance liable for service deficiency and unfair trade.
The NCDRC consisting of Presiding Member Justice Ram Surat Ram Maurya dismissed a complaint filed by the complainants against Zenal Construction Pvt. Ltd. (Zenal Construction). The commission.
In a significant ruling, the Supreme Court (SC) says an insurance policy bought by a commercial enterprise cannot be said to have a close nexus to profit-generating activity. The dominant intention of the insurance transaction is not to facilitate some kind of profit generation for the insured. Thus, the commercial enterprise is a consumer under the Consumer Protection Act. The apex court then dismissed an appeal filed by National Insurance Co Ltd.
In a notable verdict, the Supreme Court recently held that an enterprise is not excluded from the definition of "consumer" under the Consumer Protection Act 1986 merely because it is a consumer.