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Sep 09, 2024 While the Karnataka Electricity Regulatory Commission (KERC) framed the necessary guidelines and rules, it was the responsibility of the electricity supply companies to create awareness among people. “We held public consultations and laid out clearly the standards of performance to be followed by Escoms. There are many conditions laid out and the compensation that can be claimed has also been fixed under close to 17 categories,” a senior KERC official explained.  The rules allow consumers to claim compensation for violating standards of performance under many categories like number of interruptions in supply beyond set limit; time taken for connection, disconnection, reconnection, shifting; time taken for change in consumer category, load; time taken to resolve billing issues, and time taken to resolve voltage related issues. Consumer rights activists say except for newspaper notifications, Bescom has taken hardly any measure to spread the word. “We conducted a survey of nearly 3,000 people in the state and it was clear that nearly 90% of themhad no awareness about this. Escoms had to conduct awareness campaigns and release a booklet with detailed procedure to apply for compensation and the grounds on which it can be applied. However, no such effort has been made,” said Muralidharan Y G, consumer activist working in the area of electricity governance. He said Escoms also failed to introduce remote monitoring and compensation assessment systems. “The software has to be upgraded in such a way that delay in processing services should be remotely monitored and compensation automatically calculated. For instance, the system will record date on which an application for power connection was received. If the application has not been processed with the set number of days, the software should automatically award compensation. But none of these systemic changes have been made,” Muralidharan said. He said Escoms also failed to introduce remote monitoring and compensation assessment systems. “The software has to be upgraded in such a way that delay in processing services should be remotely monitored and compensation automatically calculated. For instance, the system will record date on which an application for power connection was received. If the application has not been processedwith the set number of days, the software should automatically award compensation. But none of these systemic changes have been made,” Muralidharan said. While awareness among people is low, many Bescom officials themselves were clueless about these rules. “It is a specific guideline and only departments handling it may know,” one them said. Source: Deccan Herald

Sep 06, 2024 MUMBAI: Insurance Regulator and Development Authority of India (Irdai) has tightened timelines for various services undertaken by insurance companies, aiming to enhance accountability and customer service. In life insurance, death claims that do not require investigation must be settled within 15 days, down from 30 days earlier. For early death claims that require a probe, the resolution period is now 45 days while earlier it was “not later than 90 days”. Maturity claims, survival benefits, and annuity payments should be settled on their due dates, and policy surrenders or partial withdrawals must be processed within seven days, Irdai said in its master circular on protection of policyholders’ interests. ‘Insurers must allow 30-day free-look for life, health plans’ Insurance companies are also expected to send premium due intimations and information regarding policy payments, such as maturity or survival benefits, at least one month before the due date. The regulator has said that if the companies fail to meet the timelines, customers can approach the ombudsman who has the power to direct insurance companies. For new business proposals, insurance companies are required to process them and request any additional information within seven days. A copy of the policy, along with the proposal form, must be provided to the policyholder within 15 days. In case of health insurance, the regulator has reiterated that cashless claims must be settled within three hours and non-cashless claims within 15 days. New business proposals should be processed within seven days and policy documents issued in a fortnight. For customers exercising their right to free-look cancellation, insurance companies are required to process the refundwithin seven days of receiving the request. Services related to policy loans and alterations in original policy conditions are also bound by a seven-day timeline. In unit-linked insurance policies (ULIPs), services such as switch and top-up requests must be fulfilled within seven days, In cases of customer complaints, the insurer must acknowledge the complaint immediately and initiate action within 14 days. If the issue is not resolved within this period, the insurer must inform the complainant within 14 days of the original complaint date. Key features of the master circular include providing essential information at various stages of the insurance contract and mandating Customer Information Sheets (CIS) with policy details. Additionally, insurers must offer proposal forms and CIS in regional languages and allow a 30-day free-look period for life and health insurance policies. Source: Times of India

Sep 05,2024 Hyderabad: In the wake of the devastation unleashed by the recent floods in Telangana and Andhra Pradesh, insurance regulator, Insurance Regulatory and Development Authority of India (IRDAI) has issued detailed instructions to all insurance companies to ensure that claims arising out of the loss of life, property, businesses, and infrastructure are settled speedily. In a circular issued on Wednesday, IRDAI has directed all insurers to mobilise all their resources, including outsourced functions such as surveyors, loss adjustors, and investigators, to ensure immediate service response so that all the claims are surveyed immediately and payments are disbursed at the earliest. It also said that in cases of claims involving loss of life, where the flood-affected are facing difficulties in getting death certificates due to the inability to recover the dead body, it has instructed insurers to consider claims without insisting on a death certificate if the details of the insured match with the details of the deceased published by the appropriate govt authorities. As part of efforts to expedite claims settlements, all insurance companies have been instructed to nominate a senior executive to act as a nodal claims officer to oversee the claims response. Companies have also been instructed to inform the chief secretaries of the respective states about their appointment. However, districts reporting a large number of claims can be overseen by a designated district claims service head, the insurance watchdog said. “Special claims desks at the district level with adequate delegated claims settlement authorities are recommended to be set up for affected areas to facilitate speedy processing of claims and settlements, including the release of on-account interim payments to assist early reinstatement Of property and businesses,” the IRDAI circular said. IRDAI has directed insurers to immediately engage an adequate number of surveyors and loss adjustors and, if need be, also deploy such resources from neighbouring states. To ensure the final settlement process is expedited, IRDAI has directed insurers to review and streamline claims processing by ensuring they ask only for documentation that is necessary to substantiate the claim quantum. Source: Times of India

Aug 29, 2024 NEW DELHI: Govt will launch a ‘repairability index’ for mobile phones and electronic products by Dec, a move that will help consumers make informed decisions before purchasing them. The initiative aims to address the growing e-waste problem and encourage manufacturers to produce more easily repairable items. Speaking at a workshop on ‘Right to Repair Framework’ organised by the govt, Union consumer affairs secretary Nidhi Khare said after the roll out of the index, the department will come up with a regulatory framework as well. “As India emerges as the third largest economy in the world, we should have a vibrant and tech-savvy repair system,” she said. Top industry players attended the meeting and supported the govt’s move. The ‘repairability index’ is a display or information that manufacturers will have to put on electrical and electronic equipment to inform about their repairability. Sources said once the regulatory framework is notified, manufacturers in India will have to mandatorily display them like in France. The proposed index will rate products on criteria including availability of technical documents, ease of disassembly, spare parts availability and pricing of spare parts. It will assess various elements that determine how easily a product can be repaired and thereby ultimately promoting a circular economy and reducing e-waste. Officials said the repairability index would score products on a scale of 1 to 5. The lowest score of I will be given to products that have increased risk of getting damaged and require dismantling of multiple components to access a single part. Products that offer a compromise, making some components easily accessible while others requiring more complex disassembly will get the score of 3 while items that are easy to repair as they allow direct access to parts like battery or display without unnecessary removal of other components will get the maximum score of 5. In an official statement, the consumer affairs department said that the workshop was aimed at establishing a consensus among industry stakeholders on “key parameters for accessing and evaluating repairability index” besides promoting longevity in product design, and democratising repair information to enhance consumer experiences in reusing the mobile and electronics products they own. HCL Technologies founder Ajai Chowdhry called for legislation to drive the change. “Today, most products are not repairable. We need to design products which can be repaired… Unless we create a law, things will not change,” he said. The govt has launched a SRight to Repair’ portal, with 63 companies onboard, including 23 from the mobile and electronics sector. India is the third largest electronic waste producer globally after China and the US. Source: TOI

Sep 10,2024 The Central Consumer Protection Authority (CCPA) has imposed a Rs 5,00,000 fine on Shankar IAS Academy for misleading advertisements related to the 2022 civil service exam, the regulator said on Sunday. The CCPA, led by Chief Commissioner Nidhi Khare, found that the coaching institute made false claims about its success rate and the nature of courses taken by successful candidates. In its advertisement for the 2022 UPSC Civil Service exam, Shankar IAS Academy claimed “336 selections out of 933 at All India Level”, “40 candidates in Top 100”, and “2 candidates have cleared from Tamil Nadu, of which 37 studied at Shankar IAS Academy”. The institute also advertised itself as the “Best IAS Academy in India”. However, the CCPA discovered that Shankar IAS Academy “deliberately concealed” information about the specific courses taken by the successful candidates it advertised for. “This practice consequently attracts consumers into buying paid courses advertised by the coaching institutes,” the CCPA said in a statement. The regulator’s investigation revealed that out of 336 claimed successful candidates, 221 had only taken a free interview guidance program, while others participated in various short-term or specific exam components rather than full courses, it said. The academy also claimed credit for candidates who purchased preliminary exam courses after the 2022 exam had already taken place, likely in preparation for the following year’s test. The CCPA highlighted that over 1 million candidates apply for the prestigious civil services exam annually, making UPSC aspirants a vulnerable consumer class. This action comes as part of a broader crackdown on misleading advertisements by coaching institutes, with the CCPA issuing notices to numerous organisations for similar practices. The regulator emphasised the importance of transparent information about courses taken by successful candidates, enabling consumers to make informed choices when selecting coaching programs. Source: Business Standard

Sep 10,2024 Here is a simple way to protect the bulk of your money if you fall victim to an online scam. You can do it by setting transaction limits on your cards and online banking transactions by evaluating your financial needs on a one-time basis. It will ensure that the amount of money withdrawn from your bank account or on your credit card is only within the limit set by you Fraudsters usually work at luring people to part with their identification details required for fulfilling know-your-customer (KYC) requirements. They also con you into sharing one-time passwords (OTP) through scam calls, or worse, take control of your screen. Basically, fraudsters aim to get all information required to misuse credit or debit cards by luring people to part with details. They do this by frightening people by masquerading as bank officers and threatening to block accounts or credit or debit cards for want of KYC information and then offer to guide them online to comply with the requirements. This is when they dupe people into parting with information that allows them to log into net banking accounts or even share OTPs. How many of us know that limits set for our debit and credit cards and online transactions play a vital role in deciding how much money can be siphoned out of our accounts by fraudsters? The higher the limit, the higher the loss. Let us now understand various limits that can be set. You can set two types of limits: first, on the number of transactions, and second, the amount or size of a transaction.  The first allows you to set the total number of transactions per day based on your usage – for instance, it can be four transactions per day on your debit card.  The second option allows you to set the maximum amount that can be withdrawn or transferred from your card or account daily. Again, this depends on your personal spending pattern. You can set it up at anywhere between Rs25,000 to Rs1 lakh per day. Ideally, you should cap your overall transaction amount at a little higher than your usual payment requirements to provide for unforeseen contingencies.  These limits are not independent but integrated with one another. So, if you have set your limits at Rs1 lakh and four transactions, you can make four transactions of Rs25,000 each or a single transaction of Rs1 lakh or any such combination on any given day. Online banking software also allows us to set further limits and sub-limits also.  To elaborate, if I want to transfer a certain amount to Mr XYZ online – say in a unified payment interface (UPI) or net banking transaction, I can add him as a beneficiary and go on to define whether I want to make a one-time payment to him or plan on a recurring transaction with a cap on the maximum limit of amount that can be transferred.  This is ideal for making payments directly into the accounts of domestic help or transferring allowances to children, parents or dependents who may live in another city or for subscription payments like newspapers, etc.  The same applies to debit and credit cards also. If you have a good credit score and monthly income, banks will try and lure you with a premium card or a gold or platinum card with significantly higher spending limits. While this is flattering, it also exposes you to a higher risk if you are a victim of fraud. So, it is ideal to set your limits based on your spending patterns and will usually be much lower than the default limits set by your card issuer or bank. Most banks allow you to set default limits online. Some banks even facilitate setting a time slot during which no online banking transaction can take place. For example, if my routine starts at 9 in the morning and ends at 10 at night, I can set the time slot for ‘no online banking’ from 9.30pm to 9.30am, ensuring that your card simply cannot be misused while you are sleeping.  Please check the various limits available to you and make it a point to re-set them as a one-time exercise to protect yourself and limit losses in case you become the victim of fraud.  Please note that this is an overall concept and may differ from bank to bank, so you may like to contact your bank for help with the specific features on offer for you.   Needless to add, this is not a guarantee against fraud because fraudsters are ingenious and always find new tricks to dupe people. The transaction limits circumscribe potential losses and establish you as a prudent customer when fighting for redress if the need should arise. Source: Money Life

August 12,2024 In a notable consumer rights case, a fueling mishap at an Indian Oil Corporation station in Warangal, Telangana, resulted in a significant financial settlement. The incident, which occurred on July 30, 2022, involved the incorrect fueling of a woman’s petrol car with diesel, leading to severe mechanical issues and a prolonged legal struggle. Meenakshi Naidu, the vehicle owner, faced immediate problems after the fueling error. Within minutes of leaving the station, her car began to malfunction, producing loud noises from the engine and failing to operate correctly. This prompted an urgent trip to an authorized repair center in Hyderabad, where technicians confirmed the damage was due to diesel being mistakenly pumped into her petrol vehicle. The repair costs were estimated at ₹6,381. After discovering the error, Ms. Naidu lodged a formal complaint against the fuel station operator, claiming that despite clear petrol-only markings on her fuel tank, diesel was dispensed. In her defense, the station argued that any issues should have been immediately reported. Source: Law Trend

August 08,2024 NEW DELHI: Over 50,000 cases related to real estate are pending in consumer courts, according to the government data. In a written reply to Lok Sabha, Minister of State for Food and Consumer Affairs B L Verma informed about the details of cases pending in consumer commissions relating to real estate. As per the data, there have been 2,44,813 cases filed in consumer courts at national, state and district levels. Out of that 1,94,555 cases have been disposed and 50,258 cases are pending as on July 31, 2024. “The Consumer Protection Act, 2019 provides for three tier quasi-judicial machinery at district, state and central levels commonly known as ‘Consumer Commissions’ for protection of the rights of consumers and to provide simple and speedy redressal of consumer disputes,” Verma said. The Act provides for simplification of the adjudication process in the consumer commissions; filing of a complaint by a consumer in the consumer commission; virtual hearing; deemed admissibility of complaints if admissibility is not decided within 21 days of filing. “Section 38(7) of the Consumer Protection Act, 2019 prescribes that every complaint shall be disposed of as expeditiously as possible and endeavour shall be made to decide the complaint within a period of three months from the date of receipt of notice by opposite party where the complaint does not require analysis or testing of commodities and within five months if it requires analysis or testing of commodities,” he said. The e-Daakhil portal has been launched in 35 states/UTs to provide facility to aggrieved consumers to register online consumer complaints in different consumer commissions from anywhere in India, the minister said. Source: Economic Times

August 12,2024 According to FullCircl, as we passed the first anniversary on 31st July 2024 since the implementation of this mandate, a significant event was held to discuss its impacts and progress. The event featured key FCA figures including Sheldon Mills, Executive Director, Consumers and Competition; Graeme Reynolds, Director of Competition; Therese Chambers, Joint Executive Director of Enforcement and Market Oversight; and Dominic Cashman, Director of Authorisations. Abby Thomas, Chief Executive and Chief Ombudsman at the Financial Ombudsman Service, also participated, highlighting the Duty’s impact over its inaugural year, practices worth emulating, and forthcoming priorities. In its first year, the Consumer Duty has fundamentally altered business-customer interactions across the financial landscape, promoting cultural shifts and enhancing competition. The FCA highlighted several achievements such as the sharing of best practices, reductions in GAP product commissions—yielding customer savings—and the introduction of new product lines. Noteworthy improvements in customer experience metrics and clearer customer communications were also emphasized. However, the FCA acknowledged that the Duty has introduced complexities, particularly challenging for smaller firms, with hurdles like fair value assessments and outcomes monitoring needing simplification. The discussion also focused on exemplary practices that should become more widespread. The FCA identified successful firms as those aligning their culture with customer experience, adopting comprehensive approaches to customer impact, and utilising data to understand and meet customer needs effectively. A continuous improvement culture and outcomes-focused monitoring are also crucial. The upcoming period will see a post-implementation review by the FCA to assess the effectiveness of the Consumer Duty, including thematic reviews of specific sectors and products. This review aims to gather insights on the impact and complexity of the Duty and ensure firms are delivering fair value. After a year, the Consumer Duty has proven to be a catalyst for significant advancements in consumer protection and a more customer-focused approach in financial services. Despite these successes, the journey is far from over. Firms continue to face substantial challenges that require strategic use of AI and data analytics to enhance compliance, drive growth, and improve customer experiences effectively. Source: Fintech Global

August 04,2024 The Fact Check Unit of the Press Information Bureau (PIB) has alerted SBI customers regarding a fraudulent message on social media. The scam involves a message purporting to be from SBI, instructing recipients to download an APK file to redeem reward points. This message is not legitimate. SBI never sends links or APK files through SMS or WhatsApp. Do not download unknown files or click on suspicious links to protect yourself from potential scams. Always verify any such messages directly through official SBI channels. If you receive an unusual message or ask for personal information, contacting SBI through their verified contact methods is essentialto confirm its authenticity. Staying vigilant and cautious can help safeguard your personal and financial information from fraudulent activities. “Beware ‼️ Did you also receive a message asking you to download and install an APK file to redeem SBI rewards? @TheOfficialSBI NEVER sends links or APK files over SMS/WhatsApp. Never download unknown files or click on such links,” reads a post from theFact Check Unit of the Press Information Bureau (PIB). Tips to safeguard yourself from fake messages and potential scams 1) Confirm the authenticity of the sender. Official communications from your bank will be through verified channels. 2)Refrain from clicking on links or downloading attachments from unknown or unsolicited messages. 3) If you receive a suspicious message purportedly from your bank, contact the institution using contact details from its official website. 4)Conduct transactions and manage your account only through official apps and websites. 5)Do not share personal, financial, or login details via email, SMS, or social media. 6)Notify your bank’s fraud department about any suspicious messages or phishing attempts. By following these guidelines, you can minimize the risk of scams and keep your personal and financial information secure. Source: Livemint