Under the consumer act only persons who buy goods and services for the own purpose are consumers. But the consumer protection act further amended that those who buy good or services for commercial purpose cannot be consumer other than those who buy those services for their livelihood. Even at that stage even Insurance companies were unable to move consumer fora for redressal of their grievances. In the circumstances when insurance companies are forced to take-up the under their obligation as a third party or entitle to file their complaint or under the agreement with their policy holder for their recoveries of their interest as a joint party. However their was always confusion that when it could be done. Last month Supreme Court shortage out right of insurance companies to move consumer for a in the case ECONOMY TRANSPORT ORGANISATION vs CHARAN SPINNING MILLS. The definition of consumer in the Supreme Court judgment held recently in the Gujrat Themis Bicon vs Subodh Gohklae that employ is a consumer against the right of the employ the provident fund contribution is not paid. Similarly National consumer commission held that student is also a consumer on non-publication of result of an examination. Even an industrial unit is also a consumer which admittedly is running for commercial purpose if the insurer decline to pay assured some in the Ritu Gram Udhyog Samiti vs. New India assurance company where factory collapse in a hail storm leading to a claim against the insurance company. It was held those insurance policies were taken covering the risk that was not for the commercial purpose. It is specific clear now that cover is specifically for the covering of the risks to indemnification of actual loss with no intention to generate profit.
Even insurance companies are consumers it is held in Charan Spinnig mills that insurance companies can claim compensation which were delivered by insurance company to the policy holder in pursuance to the contract but the consignment of the policy holder was lost in transition. It was held that insurance companies had jointly with the policy holder or with the authority of the policy holder can file complaint in the consumer for a so in this case insurance company is consumer under the emit of the consumer protection act.


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