Redressal of grievances under the Liability Insurance : An overview

As public liability insurance became integral to modern business risk management, the expectation was that insurers would offer not only financial protection but also prompt and fair resolution in times of distress. However, the ground reality often paints a different picture. Despite purchasing policies with the intent of securing peace of mind, many policyholders-particularly small businesses- experience frustration and uncertainty when filing claims.

- Naina Garg

Insurance, at its core, is a promise-a promise of protection when life takes an unexpected turn. Yet, when that promise is delayed or denied, it does not just break trust; it can break lives and livelihoods.

Imagine this: a family walks into a bustling bakery in Muvattupuzha, Kerala, expecting nothing more than an evening snack. Hours later, they are admitted to the hospital with severe food poisoning. What followed was not just medical trauma but also a long battle for justice, as the family sought compensation for their suffering. The Ernakulam District Consumer Commission eventually ordered the bakery to pay Rs.50,000 for negligence, making it clear that businesses cannot hide behind silence or delay when lives are at stake.

In another case, the failure of a restaurant to deliver an Onam Sadya feast to a customer's home might sound trivial at first glance. But in Kerala, Sadya is not just food-it is culture, pride, and identity. The customer, left embarrassed in front of guests, approached the Consumer Court, which recognized this emotional attachment and ordered the restaurant to pay Rs.40,000 in damages, along with a refund of the feast cost. This was not merely about late food delivery-it was a reminder that businesses are accountable for the promises they make.

Some stories are far more tragic. In Pune, two young brothers drowned in a resort pond that had inadequate safety measures and poor supervision. What was supposed to be a family holiday turned into an irreparable loss. The Kerala Consumer Forum later ordered the resort to pay an unprecedented Rs.1.99 crore in damages to the grieving parents. The judgment did more than just punish negligence- it reminded the industry that lives cannot be replaced, but justice can ensure accountability.