Zirakpur firm fined for overcharging insurance premium – The Tribune – 5th November 2018

The District Consumer Disputes Redressal Forum has penalised a movers and packers firm and an
insurance company for overcharging insurance premium. While the premium was just Rs 116, Allied
Movers and Packers India Limited, Zirakpur, charged Rs 3,000 and Future Generally Insurance,
Chandigarh, also did not provide a solution to the consumer.
The complainant, Dr Rajesh Kumar, a resident of Chandigarh, now living in Kasauli, stated that on his
transfer from the city to the Himachal Pradesh town in December 2016, he hired the services of the
movers and packers firm for transporting his household goods. He stated that he was charged Rs 12,650,
along with Rs 1,897, for transport and packing and Rs 3,000 towards insurance premium.
However, on receipt of the invoice-cum-premium receipt, he came to know that the insurance premium
was only Rs 116 and thus requested the opposite parties to refund the excess amount taken, but to no
avail. The complainant also exchanged a protracted correspondence with both the parties but in vain. He
thus approached the consumer forum.
The insurance firm admitted that the premium was Rs 116 under the “Specific Marine Insurance Policy”
that was issued in connection with the case. Documents showed that the insurance firm had charged only
Rs 116 but the movers and packers firm charged Rs 3,000 from the complainant. However, no one
appeared for the said firm and it was allowed to be proceeded against ex parte.
A perusal of various email communications of the complainant with the insurance firm revealed that the
complainant gave various reminders to it regarding illegally charging of the insurance premium by the
movers and packers firm. However, there was no concrete solution provided by the insurance firm.
Hence, Future Generally Insurance was also liable “by giving shelter to the movers and packers firm and
not highlighting its fault before the appropriate authorities”, observed the forum.
Both the firms were thus directed to refund Rs 2,884 to the complainant along with Rs 10,000 as
compensation on account of deficiency in service and causing mental and physical harassment. The two
firms were also told to pay Rs 5,000 as cost of litigation. Read More

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