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Consumer Court Bla rules for 2005 Earthquake Victims

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National Insurance Company to Compensate

BARAMULLA: In response to a complaint lodged with the erstwhile State Consumer Protection Commission Jammu on March 27, 2006, against National Insurance Company Limited, regarding deficiency of service and unfair trade practice, the District Consumer Disputes Redressal Commission (DCDRC) Baramulla/Bandipora today passed a judgment in favour of the consumers 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. The judgment also directs the insurance company to pay Rs. 50 thousand towards the complainant for causing mental and physical harassment and litigation charges.

The complaint was lodged by 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 fulfil 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 the Consumer Protection Act 1985 and hence directed them to compensate the complainant according to the set terms within 4 weeks.


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