Page 77 - Insurance Surveyors Book Ebook IC S01

Survey And Loss Assessment IC-S01

Laws Relating to Insurance Business

Consumer Protection Act 1986

'Consumer is the King/Boss/Sovereign' Whatever is in the interest of the Consumer is

in the interest "of the company. Consumers' interest before anything else.

"Competition gives wider choice and better price to consumer and hence welcome".

These statements are made in defense of 'Consumerism'. It is true that the ultimate

purpose of any object on sale or service offered is the consumer and therefore his

satisfaction alone can sustain that business enterprise at least in the long run.

In a monopolistic market condition, the consumers has not such choice and

therefore has to remain content with whatever he is offered. The vendor also

exploits the situation and does not bother to improve the quality of the goods or

services and also does not care to offer it at a reasonable price. Competition alone

can help create market conditions, where consumer's interest is held supreme. The

main argument in favour of liberalisation or open market is "Consumerism".

However, competition alone is not sufficient protection against exploitation of the

consumer unless it is backed by a legal process, which should be simple, speedy and

inexpensive, for redressal of the consumer's grievances.

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