Mediation Mechanism Must Be Strengthened To Expedite Redressal Of Disputes: Consumer Rights Body

It has also recommended strengthening the mechanism of mediation to expedite the redressal of consumer disputes.

“The pattern of buying in India has undergone a major change in the past decade and a half, which has necessitated these changes,” CERC chairman Sunil Parekh told The Secretariat.

One of the major changes is the concept of use and throw, and a decrease in the tendency to get goods repaired. “Today, if the battery of the phone is dead, you have to buy a new phone. Companies discourage repairing. But it is a financial burden on the buyer. We are pressing for the ‘Right to Repair’. The company has to then replace the defective part and give the same guarantee for the replaced part as the original one,” said Parekh. 

Another major suggestion is limiting the time for redressal of a dispute to reduce the number of adjournments in cases. CERC has suggested a maximum of one adjournment. The duration now ranges between 9-18 months, depending upon various factors. 

“The idea to set up consumer courts was to reduce the time for the disposal of cases. A case in the consumer court is supposed to be disposed of in three months. If it is to be referred to an external expert, then the duration is five months. However, now there are multiple adjournments, and by the time the case is disposed of, the judgment is no longer relevant. Many of these complaints are related to goods of daily use, so they need to be resolved on an urgent basis,” he said.

It must be noted that CERC played a pivotal role in the enactment of the Consumer Protection Act, 1986, and also when the act was amended in 2019. 

Resolutions And Redressals

Another major bottleneck in the time-bound resolution of consumer disputes is that the district as well as state courts and the central commission are inadequately staffed. According to estimates, there is a staff shortfall of 50% in these courts. Filling these vacancies is another major recommendation.

CERC has also sought the use of technology and digital courts for redressal of grievances, especially for the citizens in smaller cities, towns and villages. With technology, the hearing can be online, and there is no need for the parties to remain present in person. 

CERC has also warned against misleading advertisements on television and in newspapers. Parekh claimed that every year close to 150 advertisements are being withdrawn because of the vigilance of CERC. These relate mainly to the exaggerated claims by the companies.

Within the Consumer Protection Act, a process of mediation has proven to be effective; hence, CERC has recommended the use of this mechanism. Parekh informed that close to 50% conflicts are resolved through mediation, where the conflicting parties are brought together, and after hearing both sides, a decision is pronounced.

However, the remuneration of mediation lawyers is meagre, so they do not encourage the filing of cases in these courts, and finally, cases are filed in regular district courts, which leads to delays in judgment. CERC has recommended an increase in the remuneration for these lawyers. 

New Frontier Of Complaints: Health Insurance

Parekh informed that the latest segment to witness a sharp rise in consumer complaints is health insurance. Even though the patient is adequately insured, the companies approve only a part of the insurance claim, and that is a major concern for consumers.

Ahmedabad Hospitals and Nursing Homes Association (AHNA), a body of close to one thousand healthcare service providers in and around Ahmedabad city, has also raised an alarm and has advocated increased awareness among the patients.

“We also receive many complaints; however, very few patients are willing to go to consumer courts. If all these cases are filed, the cases would be in multiples of today’s cases,” said Viren Shah, vice president of AHNA.