Can an insurance company legally insist on taking full and final discharge from me even if I am not satisfied with the amount offered towards my claim settlement? And if I refuse to sign such a final discharge voucher can the company refuse to pay me whatever amount decided by it?
Peter Pereira, Vakola, Santa Cruz
It is common knowledge that insurance companies do insist on full and final discharge voucher being signed by the insured person before releasing the claim assessed and admitted by it. However, if the insured person is aggrieved, then the company cannot legally insist that they sign against their will.
Insurance companies often use these tactics to prevent consumers from first accepting the amount offered and then file complaints before the consumer commission or invoke arbitration for claiming the balance amount of the claim denied by the company. The National Consumer Disputes Redressal Commission has held in several cases such a practice is an “unfair trade practice” and directed the companies to pay such admitted claim amount with interest and penalty to the insured persons.
The Supreme Court in ‘National Insurance Company vs Bhogara Polyfab Pvt Ltd’ held that if such full and final discharge vouchers are obtained against the will of the insured person concerned or by coercion, undue influence or fraud, then such vouchers are not binding and have to be rejected. In such cases, the persons concerned can pursue their claims for the balance amount with interest and penalty.
I read in the newspapers that all 112 new appointments of presidents and members of district consumer commissions in Maharashtra have been declared illegal by the Nagpur Bench of the Bombay High Court. I have my complaint at South Mumbai District Commission listed for final hearing in the first week of November. I am appearing in person. I learnt that the president and members are continuing the hearing in spite of the HC order. Is this not contempt?
Suresh Mhatre, Lower Parel
The Nagpur Bench of Bombay High Court has struck down the rule constituting the selection committee for selection of presidents, members of district commissions and state commission as being bad in law. Consequently, all such appointments are without the authority of law. However, the bench has stayed the operation of its own judgment by four weeks and thus this judgment will take effect only from November 17, 2023, unless stayed further by the Supreme Court. As such the newly appointed presidents and members can function at least till November 16. There is no question of contempt here.
Even if these appointments are held illegal by the SC, the proceedings of these commissions and their orders will not be held illegal since they are protected by Section 64 of the Consumer Protection Act.
I am a senior citizen living alone on a leave and licence basis. In December 2018, the electricity distributor disconnected my connection without notice. I paid the charges under protest. I filed a case in the district consumer court for deficiency of services, etc. Court proceedings have taken place and recently I submitted evidence in the form of an affidavit supported by the leave and licence agreement, copies of correspondence, light bills etc. Can I file an FIR under Section 55 of the Rent Control Act 1999 and produce the copy of the FIR as residence proof? Can I also move the human rights commission?
Francis Rodrigues, Mumbai
It is evident that yours is a case of disconnection electricity sans any notice. What you need to prove is that during the relevant period you were in valid possession of the premises with valid leave and licence agreement. Hence there is no need for you to think of filing any FIR now to create any residence proof. In the absence of more details, I am unable to advise if you should file a case before human rights commission. In fact, the right course of action for you is to file a case before the Consumer Grievance Redressal Forum set up under Electricity Act, 2003. By now your case would have been over.
Adv. Shirish V. Deshpande, Chairman – Mumbai Grahak Panchayat
Email: shirish50@yahoo.com
