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Joe B Karwalo (Manager)     31 March 2014

What is the maximum compensation from consumer forum ?

Dear Friends,

What is the maximum compensation that the consumer court has awarded against insurance company for cheating ? I am looking for some recent consumer judgement which awards consumer a handsome compensation.

Anyone with this particular info ?



 5 Replies

Dorai Raj (NIL)     01 April 2014

Award of compensation depends on several factors.  There is no yardstick or schedule prescribed in the C. P. Act unlike as in the Workmen's Compensation Act.  The quantum of compensation usually awarded varies from Forum to Forum in cases that may look similar.  There are cases where the  quantum awarded by a District forum is reduced or enhanced in appeal by the State Commission.  In most of the complaints it is the attitude of the presiding officers of the quasi judicial forum that matters.  A subjective viewpoint plays a vital part in deciding the quantum.  Where one case is decided one way by one forum, a similar case may not be decided the same way by another forum.  Precedents are not generally followed in the matter of quantum of compensation and costs awarded.  While a liberal view is taken by some fora in some part of the country a conservative view is taken by some others in some other part.  There is a need for an amendment of the Act to lay down quantum schedules as in the Workmen's Compensation Act in cases where disablement or death occurs and loss of earning capacity can be determined without difficulty.     

Shivesh Sinha (Legal Adviser)     03 April 2014

Dear Mr. Joe B Karwalo,

I have perused your query seeking the maximum quantum of compensation being awarded by a Consumer Court in lieu of alleged Cheating by an Insurance Company.

In response to your query I quote followings for your information and knowledge with regard to award of Compensation to be awarded by a Consumer Court u/s 14 (1) (d) of the C.P.Act,1986  :-

1) "Compensation" means the 'thing given as recompense'. In ordinary parlance the expression "Compensation" means anything given to make things equivalent a thing given to or to make amends for loss, recompense, remuneration or pay.

2) U/s said 14 (1) (d) of the said Act,1986 compensation comprehends damages also.

3) While quantifying damages, consumer courts are required to make an attempt to serve the ends of justice so that compensation is awarded, in an established case, which not only serves the purpose of recompensing the individual.

4) Indeed, calculation of damages depends on the facts and circumstances of each case. No hard and fast rule can be laid down for universal application. While awarding compensation, a Consumer court has to take into account all relevant factors and assess compensation on the basis of accepted legal principles, on moderation. [ Refer : (2000) 7 S.C.C.668 ]

5) Beside compensation Interests can also be awarded on equitable grounds.

6) It is well settled by the Hon'ble Supreme Court that under clause (d) of Sec. 14 (1) of the C.P.Act,1986, Compensation can be awarded to a consumer ONLY in respect of loss or injury suffered by the consumer due to negligence of the opposite party. [Refer : (1991) 1 C.P.J. 75 at p.77]

7) It is also, firmly established on the basis of decisions of the Hon'ble National Commission that compensation is to be awarded on the basis of material on record and that compensation awarded must have a rational relation to the nature & extent of injury, inconvenience physical and mental caused to the complainant by action or omission of the Opposite Party. [Refer : (1991) 1 C.P.J. 474 at p. 479]

Now, having considered all above; in your case you will have to bring all relevant material on your case record to prove and establish - "the negligence, action or omission of the Insurance Company having cheated you (as you alleged) and which has caused you losses / injury/inconvenience (physical &/or mental) to the extent of being compensated adequately".

Hope, all above clarify & satisfy your curiosity about quantum of compensation to be awarded by a Consumer Court.

AND, even if you further have any doubt or you need my advise and or assistance in dealing your consumer case as against the said Insurance Company, feel free to approach me through my website mentioned below, which is extending its free service for alike causes.

Thanking You,


Advocate Cum Legal Adviser to www.powertoconsumer.in

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer)     05 May 2014

Notwithstanding definition of the word "compensation" under the Consumer Protection Act, 1986, the consumer courts have awarded compensation for such things as "mental agony", which are difficult to quantify. What is called compensation very often takes the shape of a punishment like a fine. You yourself work out the compensation and demand it in your complaint.  But remember the District Fora and the State Commissions have their monetary limits. Keep yourself within those limits unless you are prepared to go to Delhi before the National Commission. Also an insurance company would have more resources than you and they can drag you to Delhi also if they so decide.

shyam ji srivastava (PRACTICING LAWYER)     18 April 2015



I fully agree views of  learned Shivesh Sinha. Compensation depends upon case to case and Pecuniary jurisdiction of the Forum

With Best Wishes

Shyam Ji Srivastava

Senior Advocate

Kanpur  UP


richardjohnson   18 April 2015

Compensation award depends on many factors. Usually, consumer courts will award reasonable compensation commensurate with the loss caused to you along with cost of litigation.

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