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‘Sudden flight cancellation without alternative arrangements constituted a deficiency in service’: District Consumer Commission

In case by Chandigarh residents, consumer panel also holds insurer guilty of repudiation of insurance claim

flightsThe ruling found "deficiency in service" for flight cancellation and insurance claim repudiation. (Source: Express Archives)

Observing that sudden cancellation of a flight without alternative arrangements and repudiation of the insurance claim constituted a “deficiency in service”, the District Consumer Commission has held an airline and insurer guilty.

The insurer was asked to pay a total of Rs 50,000 to two city residents along with an interest of 9 per cent per annum from the date of filing the complaint by the two city residents on August 20, 2021. The commission also directed for reimbursement of the excess airfare the complainants spent on alternative tickets. Both the airline and the insurance company were also jointly asked to also pay Rs 9,000 as compensation.

The complainants, Sanjeev Jain and Rinki Jain, stated in their complaint that they had booked a flight from Surat to Delhi, which was scheduled to depart at 7.45 am on August 25, 2019, and arrive at 9.30 am, but it was cancelled, causing considerable inconvenience. They said they could not reschedule as no option was available within 24 hours of departure and were forced to purchase same-day alternative tickets costing Rs 5,400 each.

They further told the consumer panel that the disruption led them to cancel their train tickets from Delhi to Phagwara, resulting in an additional loss of Rs 1,730. Despite emailing the airline on August 28, 2019 seeking a refund and compensation, they alleged they received no satisfactory response.

In its reply, the airline, Air India, argued that safety checks are paramount and even minor technical concerns can necessitate cancellation, adding that passenger safety outweighs financial considerations. It also said the original ticket amount had been refunded in April 2021 and denied any deficiency in service.

The insurer, ICICI Lombard General Insurance, contended that the complainants domestic travel policy was valid only for August 25, 2019, and their claim was rejected because they failed to submit required documents, including a letter from the airline, despite being asked in January 2020.

After examining the record, the commission observed that sudden cancellation without alternative arrangements and repudiation of the insurance claim constituted “deficiency in service”. It noted that while consumers cannot receive double compensation for the same loss, they are entitled to indemnification.

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The panel directed the airline to reimburse the excess amount spent on alternative tickets after adjusting the refunded fare, ordered the insurance company to pay Rs 25,000 each to the complainants (Rs 50,000 in total) under the policy, and instructed both the airline and the insurance company to jointly pay Rs 9,000 as compensation.

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