Page 112 - Liability Insurance IC74

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retain Rs 5 lacs and recover Rs 95 lacs for reinsurers
under this treaty.

Q8. Write a detailed note on the Consumer Protection
Act, 1986.

Ans. Repeat of Q8(c) of Nov 2008

Claims out of defective goods may also arise under the
provisions of the Consumer Protection Act,1986.
Further, the Consumer Disputes Redressal Forum, if
satisfied that the goods complained against suffer from
any of the defects specified in the complaint, can issue
an order, directing the opposite party to pay such an
amount as may be awarded by it as compensation to
the Consumer for any loss or injury suffered by the
consumer due to the negligence of the opposite party.
The Forum can also provide for adequate costs to parties.

The Act was passed 'to provide for better protection of
the interests of consumers' and 'to make provision for
the establishment of consumer council and other
authorities for the settlement of Consumer's disputes.'

Some definitions provided in the Act are:
' Defect' means any fault, imperfection or shortcoming

in the quality, quantity, potency, purity or standard which

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