Page 35 - Insurance Times December 2020
P. 35
CONSUMER
PROTECTION ACT
2019: CHANGING
TIME TO OWN
PRODUCT LIABILITY
INSURANCE?
Abstract Consumer Protection Act, 2019
The consumer protection act 2019 has come into effect Consumer Protection Act 2019 (CPA 2019) received the
from 20 Jul 2020 which has replaced the three-decade- assent of the President of India on 09 Aug 2019 and came
old act. New mechanisms to protect the rights of into effect from 20 Jul 2020 thus replacing the three-
consumers, the establishment of the Central Consumer decade-old Act. There has been a continuous rising of court
Protection Authority (CCPA), easier to file the complaints cases also digital era and e-commerce services have been
are a few of the steps which shall protect the rights of increased manifolds, thus a strong need to have changes in
the consumers. The manufacturer, the retailer may be the act was deliberated over some time. To protect the
liable for compensation if the products or services sold rights of the consumer and smoothen the process of filing
caused harm or injury to the consumer. The product cases CPA 2019 will ease the process of redressal of
liability insurance which aims to protect the insured from grievances and bring consumer awareness.
huge legal expenses including compensation awarded by
courts may come to the rescue and can save from huge Highlights of CPA 2019
financial losses to the insureds for inadvertent goods. New terms like advertisement, product, product
liability, e-commerce has been introduced in the act.
About the author The definition of the consumer has been widened to
cover the e-commerce transaction. In the earlier
Deepak Kumar version of the act, e-commerce transactions were not
MA, MSc, MCA, LLB, M Phil, FIII specifically included. This lacuna has been redressed in
Assistant Manager, the act. Now all types of e-commerce entities related
The New India Assurance Co. Ltd to the sale of goods, services& their returns, refunds
Gandhinagar, Gujarat have been brought under the ambit of the act.
The Insurance Times, December 2020