Sector wise Complaints

Transcription

1 Introduction In the wake of privatization, liberalization, government of India has come out with the liberalized rules and regulations and has made major changes in the business policies. Private firms, national and foreign as well, are allowed to run the businesses in India with comparatively less restrictions and that is why competition is getting tougher day by day. Furthermore, most of manufacturers and traders have been adopting unfair trade practices for the purpose of promoting sale and to get the upper hand in the market. Among all the sectors, service sector is a fastest growing sector in India and in service sector, banking and insurance are two major areas where competition is on the peak. Due to such level of competition, insurance and banking companies sometime resort unfair practices for promoting sale to getting lions share in the market. In such a scenario, common consumers become prone to be cheated, deceived and misguided. There are so many complaints which have been filed in Consumer Courts against insurance and banking companies for one reason and others. Sector wise complaints filed in Consumer Forums across the country are given in table.. Table., Sector wise Complaints Sector Percentage Goods % Goods % Insurance % Banks % Services % Telecom % Misc. % Total 0% Source: - Annual Report 00-0, Government of India, Ministry of Consumer Affair, www. fcamin.nic.in Scope of Consumer Forum is very wide, because complaints relating to the products, services, banks, telecom etc, can be filed in the concerned Consumer Forum. On an average, % complaints, in Consumer Forum, are filed against service provider and only % complaints are registered against goods providers. If sector wise assessing, around % cases are lodged against the insurance companies and % cases are filed against banking companies. Furthermore, % complaints are registered against the telecom companies and Page

2 only % cases belong to the products. Overall, % complaints are lodged against services providers and rests of the complaints (%) are related with goods. Hence, most of the complaints in Consumer Courts are related with services. Table., Cases against Services Providers in Percentage Total Cases Against Banking Companies Against Insurance Companies Against Telecom Miscellaneous 0%.%.% 0.%.0% 0%.%.% Source: Computed Table, Annual Report 00-0, Government of India, Ministry of Consumer Affair, www. fcamin.nic.in It is clear from the table. that on an average, very large number of complaints i.e.% are lodged against service providers and among the service providers,.% of the complaints are registered against banking and insurance companies. Furthermore, 0.% of complaints are registered against telecom companies and only.0% are filed against miscellaneous such as, power sector, real estate and transport companies. It is also clear from above facts that majority of cases are against insurance and banking companies and hence, this is the area where consumers need protection from misleading and disguising practice adopted by banking and insurance companies. For protecting the consumers from unfair practices, there is a quasi-judicial body at district level i.e. District Consumer Forum. A Forum is a place where both the parties (complainant and opposite party) are brought together to settle their disputes, Consumer Forum provides equal opportunity to both of the parties to put forward their point of grievances before it. On an average, around 0% cases are adjudicated in favour of consumers and only 0% cases are adjudicated against consumers. For analyzing the impact of dispute redressa on consumers and corporates, only those variables were included which were matter of disputes between complainants and opposite parties under Consumer Courts. For assessing the issues or problems between corporates and consumers, the researcher went through more 0 cases and found out points of disputes. Page

3 The Main Issues of Disputes It has already been revealed that most of the complaints were registered against insurance and banking companies in Consumer Courts. For the sake of easy understanding, all the disputes were categorized in three parts such as; disputes related with general business activities, compensatory activities and customer services. Besides, level of satisfaction with the dispute redressal of Courts was also examined. In order to examine the level of satisfaction, respondents were asked about the proceeding happened in their cases. In addition to this, impact on morale of aggrieved consumers was also assessed by asking some specific questions. Procedural Aspects Consumer Courts established under Consumer Protection Act to settle the disputes between corporates and consumers in best possible manner. Although these Forums were set up to protect the interests of consumers and save them from the evils of unfair trade practices, but these Redressal Agencies listen both the parties (complainants and opposite party) and provide equal opportunity to put forward their points of disputes. But the existing studies revealed some confusion and conflicts regarding dispute redressal under this quasi-judicial body. Hence, the researcher decided to assess the level of satisfaction with dispute redressal of these Courts. The best possible way to examine the level of satisfaction was the views of opposite parties (corporates) and complainants (consumers). The concerned respondents were asked some questions about the proceedings happened in their cases. Problems related with General Business Activities Under the general activities, compliance with guidelines of CPA, misrepresentation of usefulness of services, disclosure of terms, conditions and exception clauses, Misleading and disguising advertisement, highly exaggerated promises and self-dispute redressal mechanism were included. The complainants (Aggrieved Consumers) filed their complaints in Consumer Courts since they felt cheated, misguided, misinformed. They were of the view that the companies made promises of high returns, but actual returns were very less or negative. They (consumers) also claimed that the companies did not consider their problems Page

4 even once and their (consumers) valid claims were rejected due to undisclosed terms, conditions and exception clauses. Compensatory Problems According to the Consumer Protection Act, there is a provision to compensate consumers for monetary and non-monetary losses. Furthermore, Consumer Courts are authorized to provide compensation if complainants suffer any of the losses such as, compensation for mental harassment, compensation for litigation cost and interest for delayed reimbursement etc. There have been some disputes between consumer and companies regarding compensation since complainants (consumers) claim that companies do not provide as much compensation as it adjudicated by Consumer Courts. Even, they (companies) procrastinate and take very long time while remitting adjudicated amount of claim. On the other hand, companies were of the views that compensation is provided to consumers according to orders of District Courts and compensatory charges have increased to a great extent comparing to earlier. Hence, it was decided by the researcher to analyze the compensatory impact on consumers and companies. Problems related with Customer Service Customer service is also a matter of disputes between consumers and companies under District Consumer Forum. Consumers have registered so many complaints in Dispute Redressal Forum due to avoidance of customers problems such as, unnecessary delay in solving customers problems, negligent behavior, inadequate safety of transactions, rejection valid claims and huge discrepancies in the transactions. Consumer Courts have adjudicated so many cases in favour of complainants (consumers) due to not providing appropriate customer service. In so many judgments, banking and insurance companies have been ordered to remove inaccuracies in the transactions and taking care safety and security of transactions. That is why the researcher decided to analyze the impact of dispute redressal on customers services provided by banking and insurance companies. Page

5 (B) Analysis of Impact of Dispute Redressal This chapter is divided in two sections i.e. (a) concerned officers of banking and insurance companies and (b) aggrieved consumers. To know the perception of respondents regarding District Consumer Courts and its impact on consumers and corporates, survey method was adopted. Respondents were administered to determine the opinion survey schedule regarding impact of dispute redressal and two other groups of respondents (Lawyers and MCF) were excluded from this part of study. Responses of respondents were considered for analyzing the impact. Out of respondents, were Concerned Officers and rest of them i.e. 0 was aggrieved consumers. Two groups of respondents were further categorized in four groups i.e. banking officers, insurance officers, banking consumer and insurance consumers. The data has been tabulated separately for all the groups of respondents, together with the comprehensive presentation of the mean score/percentage values and the ratings have also been rendered against each statement or variable. The analysis and interpretation thereafter have been supported by figures, where justified. The respondents were asked to rate each question for analyzing the impact according to their level of agreement with it by using a five-point Likert-type scale. Contents of scale were changed according to need of the assessment.s After working out a mean score for each statement, each mean score was converted into percentage value, so as to obtain uniformity and comprehensible picture of the agreement level for the contents of that particular statement among the respondents. Each mean score was converted into percentage score through following computation; Ҳ Score (%) Mean Score Lowest Point of the Score Range X 0 Highest Lowest value of the Score Range For interpreting the percentage values, a rating scale has been used, according to which the percentage value; The opinion score up to 0% has been considered as Very Negative Impact. Page

6 The opinion score from 0.% to 0% has been considered as Somewhat Negative Impact. The opinion score from 0.% to 0% has been considered as Not Much Impact. The opinion score from 0.% to 0% has been considered as Somewhat Positive Impact. The opinion score above 0% has been considered as Very Positive Impact. This scale has been used for the measurement of all the variables except compensatory charges for banking and insurance companies. Section (a), Impact on Corporates Under this section, the researcher has made an attempt to analyze the impact of dispute redressal on Banking and Insurance Companies. For assessing the impact, six years period from 00 to 0 was chosen. Furthermore, respondents were asked about the procedural aspects of Consumer Courts, impact on business in general, customer services and compensatory charges. The impact has been analyzed on the basis of time period i.e. from 00 to 0. () Impact on Banking Companies For assessing the level of satisfaction with dispute redressal, banking officers were asked whether they were satisfied or dissatisfied with dispute redresal. If yes, then to what extent and with which specific aspect? Procedural Impact Views of Concerned Officers regarding procedural aspects of Consumer Forum are recorded in the table.. The frequencies among the perceptions are also displayed in the above table. For analyzing the impact of Consumer Forum, the respondents were asked to express their level of agreement with contents of said statements. Average agreement with contents of said statements are as follows- Page

7 Table-., Responses of Banking Officer S.N Factors A B C D E T WS Full opportunity is provided to you put forward your cases in Consumer Forum. Smooth and fair trial is provided to you in Consumer Forum. Staff of Consumer Forum has been very supporting and courteous during the proceeding in your cases. Consumer Forum adopts great care and caution during the proceeding in your cases. Consumer Forum emphasizes on easy and active settlement of claim in your cases. You are satisfied with judgments given by Consumer Forum in your cases. Source Survey, Figures given in brackets are in percentage Scale: A Strongly Agree, B Somewhat Agree, C Indifferent, D Somewhat Disagree and Strongly Disagree. T Total, W.S Weighted Scores. A major portion i.e..% of the respondents expressed very strong agreement with the procedural aspects of Consumer Forum since they were agreed with the first content of said statements i.e. strongly Agreed. A large portion i.e..% of the respondents shown agreement to some extent with procedural aspects as they were agreed with the second content of the statements i.e. somewhat agreed. (.) (.) (.) (.) (.) (.).% of the respondents found neither very much agreed nor disagreed since they marked on the third content of the statements. (.) (0.0) (.) (.) (.) (.) Only.0% of selected respondents revealed dissatisfaction to some extent as they went with the forth content of said statements i.e. somewhat disagreed. A small percentage i.e..% of respondents found strongly disagreed with procedural aspects of Consumer Forum as they selected last content of given statements. Figure. reveals percentage values and on the basis of percentage values, interpretation of responses has been made. Measurement scale is given at the bottom of the figure and awarded contents to the said statements are pasted at the left. (.0) (.) (.) (.) (.0) (.) (.0) (.0) (.0) (.) (.0) (.) (.0) (.0) (.0) (.0) (.0) Average Agreement.%.%.%.0%.% 0% Page

8 Fig.. F A C T O R S All the selected statements were rated as being somewhat positive impact since its percentage scores found in the range from 0.% to 0% namely, () full opportunity is provided to put forward your case in Consumer Court, () smooth and fair trial is provided, () staff of C.F. has been very supporting and courteous, () great care and caution is adopted during the proceeding in your cases and () you are satisfied with the judgments given by Consumer Forum in your cases. Although banking officers were agreed to some extent with procedural aspects of Consumer Courts, but they did not express very high agreement with said statements since all the statements were rated as being somewhat positive impact. Furthermore, average score (.0%) found in the range from 0.% to 0% and this range has been assumed to be somewhat positive impact. Hence, procedural aspects of Court have some positive impact on banking companies. Impact on Business in General Table. shows responses of Concerned Officers regarding changes in businesses operation due to Consumer Forum. For analyzing the impact on in-house business activities, six questions in statement form were asked to the respondents to know whether any change has been made due to dispute redressal of Consumer Courts. If yes, then how did it affect your Page

9 interests? Frequencies among the perception are given in the columns from A to E and weighted scores are placed in the last column. Table-., Responses of Banking Officers S.N Factors A B C D E T WS Compliance with the guidelines of CPA while rendering services. (.) (.) (.0) (.0) (.0). Reduction in the misrepresentation of the usefulness of service. (.) (.) (.) (.) (.0). Increase in Disclosure of Information. (Terms, Conditions, Exception Clauses) (.) (.) (.0) (.0) (.0). Reduction in Misleading Advertisement. Reduction in exaggerated promises. (.) (.) (.) (.) (.) (.) (.) (.) (.0) (.0)..0 Enrichment of self- dispute redressal mechanism. (.) (.) (.) (.0) (.0). Average Agreement.%.%.%.0%.% 0%. Source Survey, Figures given in brackets are in percentage Scale: A Very Positive Impact, B Somewhat Positive Impact, C Not Much Impact, D Somewhat Negative Impact, E Very Negative Impact. T Total, W.S Weighted Scores. A major portion i.e..% of the respondents revealed very high agreement as they selected first content of the given statements i.e. very positive impact. A large portion i.e..% of selected respondents marked on the second content of the statements i.e. somewhat positive impact. Of all the respondents,.% respondents were neither agreed nor disagreed as they marked on the third content of the statements i.e. indifferent. Only.0% of the respondents went with forth content of the said statements i.e. somewhat negative impact. A small portion i.e..% of selected respondents expressed high disagreement since they placed a tick-mark on last content i.e. very native impact. Page

10 Fig.. F A C T O R S Figure. reveals percentage values given at the right of the figure. Measurement scale is given at the bottom and awarded contents to the said statements are placed at the left. Out of six statements, five statements were rated as being somewhat positive impact because its percentage score found in range from 0.% to 0% namely, () compliance with guidelines of CPA while rendering services, () reduction in misrepresentation of usefulness of services, () reduction in misleading advertisements, () reduction in exaggerated promises and () enrichment of self dispute redressal mechanism. Only one statement was rated as being very positive impact namely, () increase in disclosure of information (Terms, Conditions and Exception clauses). In nutshell, it is realized from above analysis that due to Consumer Forum, banking companies have made some changes in operational activities and due to these changes in operational activities, not only banking consumers are benefited, but also these changes would improve brand image of the banking companies in the eyes of consumers. But still there are some areas where companies need to focus such as, negligent behavior, exaggerated promised and misrepresentation of services. Overall, general operational activities are affected positively and it is good for banking companies. Page

11 Impact on Customer Services Table. reveals responses of branch managers regarding improvement in customer services due to Consumer Forum. For analyzing the impact on customer services, seven variables of customer service were surveyed. The respondents were asked whether customer s services have improved. If yes, how did it affect your interests? Frequencies among the perception are given in the columns from A to E and weighted scores are displayed in the last column of the above table. Table-., Responses of Banking Officers S.N Factors A B C D E T WS Increased Safety and Security (.) (.) (.0) (.). Reduction of discrepancies in the transactions. (.) (.) (.) (.0) (.0). Speedy settlement of Complaints (.) (.) (.) (.0). Ease of Documentation and Procedure Decrease in Rejection of Complaints (.) (.) (.) (.) (.) (.) (.) (.0) (.0) (.0).. Reduction in negligent behavior (.) (.) (.) (.0) (.0).0 Increase emphasis on providing time bound services (.) (.) (.) (.). Average Agreement.%.%.%.%.% 0%. Source Survey, Figures given in brackets are in percentage Scale: A Very Positive Impact, B Somewhat Positive Impact, C Not Much Impact, D Somewhat Negative Impact, E Very Negative Impact. T Total, W.S Weighted Scores. A major portion i.e..% of the respondents said that customer service have improved to a great extent due compliance with guideline of CPA and improvement in customer service were positive for companies as first content of the given factors i.e. very positive impact was selected by banking officers. A large portion i.e..% of selected respondents marked on the second content of the factors i.e. somewhat positive impact. They were of the opinion that improvement in customer would have positive impact to some extent. A significant portion i.e..% of selected respondents remained indifferent since they reveled neither positive nor negative impact. Page

12 A considerable portion i.e..% of the respondents expressed some negative impact as they selected forth content of the said factors i.e. somewhat negative impact. A small portion i.e..% of selected respondents revealed very negative impact on customer service. Fig.. F A C T O R S Figure. reveals percentage values and on the basis of percentage values, interpretation of responses regarding customer service has been done. Measurement scale is given at the bottom of the figure and concerned contents are given at the left. Out of seven statements, only one statement was rated as being very positive impact since it percentage score was beyond 0% namely, () speedy settlement of complaints. Remaining six statements were rated as being somewhat positive impact as its percentage value found in range from 0.% to 0% namely, () increased safety and security, () reduction of discrepancies in transactions, () ease of documentation and procedure, () decrease in Rejection of complaints, () reduction in negligent behaviors and () emphasis on providing time bound services. Conclusively, it is realized from above analysis that due to Consumer Forum (CPA), banking companies have made vast changes in customer services i.e. safety and security has increased, discrepancies in the transaction have decreased, settlement of complaint have Page

13 become speedier and number of complaints have also decreased. Moreover, average score (.%) was feel in the range from 0.% to 0% and this range was assumed to be somewhat positive impact. Hence, improvements are positive from the point of view of companies and consumers as well. Impact on Compensatory and legal Charges Table. displays responses regarding compensatory charges. According to Consumer Protection Act, Consumer Courts are authorized not only to prevent and punish wrong doings of companies, but also to compensate for the loss suffered by consumers due to deficiency in services provided by banking companies. So, for analyzing the impact on compensatory charges, respondents were asked whether the compensation charges has gone up, if yes, then to what extent and for which type of losses? Table-., Responses of Banking Officers S.N Factors A B C D E T WS Increase in Remittance of Claims (.) (.) (.) (.0).0 Increase in Compensation for Mental Harassment. (.) (.) (.) (.) (.0). Increase in Compensation for Litigation Cost. (.) (.) (.) (.0) (.0). Increase in Compensation for delayed reimbursement (Interest). (.) (.) (.) (.) (.). Increase in Some Other Legal Charges (Payment to advisors and Court Fee). (.) (.) (.) (.) (.0). Average Agreement.%.%.0%.%.% 0%. Source Survey, Figures given in brackets are in percentage Scale: A Fully Increased B More than Partial, B Partially Increased and C Less Increased and Not Increased. T Total, W.S Weighted Scores. Average wise analyzing,.% of the respondents said that compensation charges has gone up tremendously and if a consumers get loss due to deficiency in service, companies remit not only amount claim but also compensate for mental harassment, litigation cost and interest for delayed reimbursements. A major portion of respondents i.e..% selected second content i.e. more than partial and stated that consumers were compensated for lose including remittance of claim if deficiency in services was proved. Page

14 Out of total respondents,.0% of them were of the opinion that compensation charges have increased partially and due to these compensatory charges, companies have to suffer losses. A considerable portion i.e..% of selected respondents stated that compensatory charges have increased to some extent or less than partial in comparison to the period before 00. A small portion i.e..% said that there was no increase in any compensatory charge, be it compensation for mental harassment, litigation cost or compensation delayed reimbursement. Fig.. F A C T O R S In the figure., first, mean scores for all the factors were converted into percentage values and on the basis percentage values, inferences have been drawn accordingly. Measurement scale is given at the bottom of the figure and related contents are placed at the left of the figure. Out of five variables of compensatory and legal charges, expenses have increased more than partial for four variables namely, () remittance of claimed amount () compensation for mental harassment, () compensation for litigation cost and () payment for some other legal charges. Certainly, this increase was against the interests of the companies. Page

15 Compensatory charges have increased partially for one variables namely, () compensation for delayed reimbursement. In short, compensatory charges of companies have increased to a greater extent for four variables and partial increase for one variable. Since these charges have increased due to deficiency in the service, banking companies is suffering this loss due to their fault in providing service. Consequently, these charge had negative impact over banking companies. But this negative impact can be offset by decreasing the rejection of valid claims since companies have to pay these charges only when rejection of claim was invalid. Rejection of valid claim might be intentional or by mistake, but in both the conditions, interests of the companies get affected negatively. Page

16 () Impact on Insurance Companies Impact on insurance companies has been analyzed as it was analyzed on banking companies. All the variables were grouped under four factors namely, Procedural aspects, impact on business in general, customer services and compensatory charges. Impact was assessed for specific time period i.e. from 00 to 0. Procedural Impact To measure the procedural impact on insurance consumers, six questions in statement form were asked to the insurance officers (including managers) and their opinions are recorded in the table.. The frequencies amongst the perceptions of the respondents are displayed in the column from A to E and weighted scores are placed in the last column of the table. Table-., Responses of Insurance Officer S.N Factors A B C D E T WS Full opportunity is provided to put forward your cases in Consumer Forum. Smooth and fair trial is provided to you in Consumer Forum. Staff of Consumer Forum has been very supporting and courteous during the proceeding in your cases. Consumer Forum adopts great care and caution during the proceeding in your cases. Consumer Forum emphasizes on easy and early settlement of claim in your cases. You are satisfied with judgments given by Consumer Forum in your cases. Source Survey, Figures given in brackets are in percentage Scale: A Strongly Agreed, B Somewhat Agreed, C Indifferent, D Somewhat Disagreed and Strongly Disagreed. T Total, W.S Weighted Scores. Average wise analyzing, a large portion i.e..% of the respondents expressed strong agreement as they found agreed with the first content of the statements, i.e. strongly agreed. Another large portion, i.e..% of respondents found agreed with second content of the statement i.e. somewhat agreed. (.) (.) (0.) (.) (.0) (.) (.0) (.) (.0) (.0) (.) (.0) (.) (.0) (.0) (.) (.0) (0.) (.0) (.0) (.) (.) (.) (.) (.) (.) (.) (.) (.) (.) Average Agreement.%.%.%.%.% 0% Page 0

17 A significant portion, i.e..0% of the respondents revealed neither satisfaction nor dissatisfaction since they selected third content of said the statements indifferent. A considerable portion i.e..0% of the respondents depicted some disagreement as they marked on the forth content of said statements i.e. somewhat disagreed. Only.% of the respondents expressed strong disagreement since they selected on the last content of the said statements i.e. strongly disagreed. Fig.. F A C T O R S Figure. reveals percentage values and on the basis percentage values, final inference has been drawn. Measurement scale is given at the bottom of the figure and considered statements are placed at the left of above figure. All the considered statements were rated as being somewhat positive impact namely, () Full opportunity is provided to put forward your case in Consumer Court, () Smooth and fair trial is provided, () Staff of CF has been very supporting and courteous, () Great care and caution is adopted during the proceeding in your case,, () Consumer emphasize on easy and early settlement of claim and () You are satisfied with judgments given by Consumer Courts in your cases. It is inferred from above analysis that insurance companies were agreed with the dispute redressal procedure of consumer to some extent, because respondents (Concerned Officers) Page

18 did not reveal very strong agreement with dispute redressal of Consumer Forum. Average score (%) of all the statements was found in the range from 0.% to 0% and this range was assumed to be somewhat positive impact. Hence, redressals under Consumer Courts are not against the interests of service providers, but still there is a need to make some improvement in dispute redressal under these Courts. Impact on Business in General Table. shows responses of Concerned Officers regarding changes in businesses activities due to compliance with orders of Consumer Forum. For analyzing the impact on in-house business activities, six questions were asked to respondents. The respondents were asked whether general business activities have improved, if yes, then how did these changes affect you interests? Frequencies among the perception are given in the columns from A to E and weighted scores are placed in the last column. Table-., Responses of Insurance Officers S.N Factors A B C D E T WS Compliance with the guidelines of CPA while rendering services. Reduction in the misrepresentation of the usefulness of service. Increase in Disclosure of Information. (Term, Conditions, Exception Clauses) Reduction in Misleading Advertisements. Reduction in exaggerated promises. Enrichment of self dispute redressal mechanism. Source Survey, Figures given in brackets are in percentage Scale: A Very Positive Impact, B Somewhat Positive Impact, C Indifferent, D Somewhat Negative Impact and E Very Negative Impact. T Total, W.S Weighted Scores. A major portion i.e..% of the respondents expressed major improvements in general operating activities and these improvements effected very positively to insurance companies as respondents have selected first content of the given statements i.e. very positive impact. 0 (.0) (.) (.) (.) (.) (.0) (.) (.) (.0) (.0) (.0) (.0) (.) (.) (.) (.0) (0.) (.) (.) (.) (.) (.0) (.0) (.) (.) (.) (.) (.) (.) Average Agreement.%.%.%.%.0% 0% Page

19 A large portion i.e..% of selected respondents marked on the second content of the statements i.e. somewhat positive impact. A considerable i.e..% of selected respondents found agreed with third content of the statements i.e. indifferent. According to these respondents, changes in general operating activities affect neither positively nor negatively since they were indifferent. Only.0% of the respondents were of the opinion that improvements in general operating activities affected negatively to some extent because they selected forth content of the statements i.e. somewhat negative impact. A small portion i.e..% of respondents said that change in operating activities affected very negatively since fifth content of given statements were selected i.e. very negative impact. Fig.. F A C T O R S Figure. reveals percentage values given at the right of the figure, measurement scale is given at the bottom and measurement contents are placed at the left of the figure. Out of six statements, two statement were rated as being very positive impact namely, () Compliance with guidelines of CPA while rendering services and () Increase in disclosure of information (about terms, conditions and exception clauses). Four factors were rated as being somewhat positive impact namely, () Reduction in misrepresentation of usefulness of services, () Reduction in misleading advertisements, Page

20 () Reduction in exaggerated promises and () Enrichment of self dispute redressal mechanism. In short, it can be said that due to Consumer Forum, insurance companies have made tremendous changes in general business activities and certainly, these changes affected positively to the insurance companies since average score (.%) of all the statements was found in the range from 0.% to 0% and this range was assumed to be somewhat positive impact. However, there are some areas where Consumer Courts need to emphasis such as, exaggerated promises and misrepresentation representation of usefulness of services. Impact on Customer Services Table. reveals responses of branch managers regarding improvement in customer services due to Consumer Forum. For analyzing the impact on customer services, seven questions were asked to the respondents. The respondents were asked whether customer services have improved due to Consumer Courts, if yes, then how did it affect your interests? Frequencies among the perception are given in the columns from A to E and weighted scores are displayed in the last column of the above table. Table-., Responses of Insurance Officers S.N Factors A B C D E T WS Increased Safety and Security Reduction of discrepancies in the transactions. Speedy settlement of Complaints or claims Ease of Documentation and Procedure Decrease in Rejection Complaints or Claim Reduction in Negligent Behavior Increase emphasis on providing time bound services (.) (0.) (.0) (.0) (.0) (.) (.) Source Survey, Figures given in brackets are in percentage (.) (0.) (.) (0.) (.) (0.) (.) (.) (.0) (.0) (.) (.0) (0.) (.0) (.0) (.) (.) (.) (.) (.) (.) (.) (.) (.) Average Agreement 0.%.%.%.%.% 0% Page

21 Scale: A Very Positive Impact, B Somewhat Positive Impact, C Indifferent, D Somewhat Negative Impact and Very Negative Impact. T Total, W.S Weighted Scores. A major portion i.e. 0.% of the respondents were of the view that customer services have improved to a great extent and improved services were positive for companies since respondents selected first content of the given statements i.e. very positive impact. A large portion i.e..% of selected respondents stated that improvement in customer serviced would have some positive impact as respondents marked on the second content of the statements i.e. somewhat positive impact. A considerable portion i.e..% of selected respondents expressed neither positive nor negative impact as they selected third content of the statements i.e. Indifferent. Only.% of selected respondents selected forth content of the said statements i.e. somewhat negative impact. An insignificant portion i.e..% of selected respondents placed a tick-mark on last content i.e. very negative impact. Fig.. F A C T O R S Page

22 Figure. reveals percentage value and percentage values have been taken into consideration for drawing inference. Measurement scale is given at the bottom of the figure and considered statements are placed at the left of above figure. Of all the statements, only one statement was rated as being very positive impact namely, () decrease in rejection of complaints. Rest of the statements were rated as being somewhat positive impact namely, () increased safety and security, () reduction of discrepancies in transactions, () speedy settlement of claims () ease of documentation and procedure, () reduction in negligent behavior and () emphasis on providing time bound services. In short, it is realized from above analysis that due to Consumer Forum (CPA), Insurance Companies have made tremendous improvement in customer services as safety and security has increased, discrepancies in transactions have decreased. Furthermore, rejection of claim and complaints has come down drastically. Respondents were of the views that changes in customer services were positive from the companies point of views since average score (.0%) of all the statements was fell in the range from 0.% to 0% and this range was assumed to be somewhat positive impact. Hence, by and large, dispute redressal under Consumer Court had positive impact on insurance companies. Impact on Compensatory and Other Legal Charges Table. displays responses regarding compensatory charges and legal charges. According to Consumer Protection Act, Consumer Courts are authorized not only to prevent wrong doings of companies, but also compensate for the loss suffered by consumers due to deficiency in services provided by insurance companies. So, for analyzing impact on compensatory charges, respondents were asked about whether the compensatory charges have increased in comparison to the period before 00. If yes, then to what extent and for which type of loss? Page

23 Table-., Responses of Insurance Officers S.N Variables A B C D E T WS Increase in Remittance of Claims (.) (.) (.0) (.) 0. Increase in Compensation for Mental Harassment. (.) (.) (.0) (.) 0. Increase in Compensation for Litigation Cost. (.) (0.) (.) (.) (.) 0. Increase Compensation for Delayed Reimbursement (Interest). (.) (.) (.) (.) (.) 0. Increase in Some Other Legal Charges (Payment to Lawyers and Court Fees.). (.) (.0) (.) (.) 0. Average Agreement.%.0%.%.%.0% 0%.0 Source Survey, Figures given in brackets are in percentage Scale: A Fully Increased B More than Partial, B Partially Increased, C Less Increased and Not Increased T Total, W.S Weighted Scores. Average wise analyzing, a largest portion i.e..% of the respondents said that compensatory charges have increased to a great extent as they selected the first content of the compensatory variables i.e. fully increased. A very significant portion i.e..0% of the respondents selected second content i.e. more than partial and they stated that compensatory charges have increased to greater extent. Moreover, consumers are compensated for lose including remittance of claim if deficiency in services is proved. Out of total respondents,.% of them selected third content of scale i.e. partially increased and they were of the opinion that compensatory charges have increased partially. Only.% of selected respondents selected forth content of selected variables and they stated that legal and compensatory charges have increased to some extent. A very small portion i.e..0% of the respondents said that legal and compensatory charges remained unchanged. Page

24 Fig.. F A C T O R S In the figure-., first, mean scores for all the statements were converted into percentage values and then, inferences were drawn accordingly. Measurement scale is given at the bottom of the figure and related content are given at the left of the figure. Out of five variables of compensatory and legal charges, these charges have increased more than partial for three variables, namely, () compensation for mental harassment, () compensation for litigation cost and () payment for some other legal charges. One variable was rated as being fully increased namely, () remittance of claim. Compensatory charges increased partially for compensation of delayed reimbursement as it was rated as being partially increased. In short, compensatory and legal charges have increased to a greater extent and this increase in charges was against the interests of the insurance companies. But, this negative impact can be circumvented by decreasing the rejection of valid claims. So, before rejecting claims, careful valuation of insurance policy should be done and this careful valuation will decrease unnecessary charges like, compensation for metal harassment, compensation for litigation cost, interest for delayed reimbursement and some other legal charges. Page

25 Hypothesis Testing Since most of the complaints (related with services) in Consumer Forum were registered against banking and insurance companies and that is why these two sectors were selected for this study. While selecting the companies from two sectors, researcher made an assumption that impact of Dispute Redressal was same on two sectors. Although, it is clear from above analysis that level of impact on insurance companies was higher than banking companies since the weighted scores of insurance officers were higher than banking officers. But whether the difference between two is significant has been tested. For testing the significance of difference, two tailed, independent t-test was applied through SPSS. The statement of assumption was as follows; H O : There is no significant difference between the impacts of dispute redressal on banking and insurance companies. Table., Results of Independents t-test Factors Groups N Mean Std. Dev. Std. Error Mean Mean Differ. Sig. (- tailed) P-Value Null Hypothesis Procedural Aspects General Activities Compensatory Charges Customer Services - Banking Insurance Banking Insurance Banking Insurance Banking Insurance Rejected.0 Accepted.0 Rejected.0 Accepted Since the significance level of procedural aspects and compensatory charges was (given in the th column) less than p-value i.e..0 (given in the th column). Hence, hypothesis has been rejected because difference between impacts on two groups of respondents was Page

26 significant. On the other hand, significance level of general activities and customer services was higher than the p-value. Hence, hypothesis has been accepted for these factors as difference between the impacts was insignificant. It is inferred from above hypothesis testing that banking companies were more satisfied than insurance companies with procedural aspects of Consumer Forum and on the other hand, increase in compensatory charges of insurance companies was higher than compensatory charges of banking companies. But the increase in customers services and other general activities was same. Page 0

27 Section (b) Impact on Banking and Insurance Consumers Under this section, views of Banking Consumers and Insurance Consumers have been analyzed. The respondents were asked certain questions about proceedings, compensation for monetary and non-monetary losses and some questions relating to their morale. This section was divided in two parts comprising views of banking consumers in first part and views of insurance consumers in second part. () Impact on Banking Consumers Procedural Impact Table. reveals the responses of banking consumers regarding procedural aspects of Consumer Forum. For analyzing the impact, six questions in statement form were asked to consumer having cases against banking companies. Table-. Responses of Banking Consumers Regarding Their Own Cases S.N Factors A B C D E T WS Full opportunity was provided to put forward your case in Consumer Forum. Smooth and fair trial was provided in your case under Consumer Forum. Staff of Consumer Forum was very supporting and courteous during the proceeding in your case. Adoption of great care and caution during the proceeding in your case. Consumer Forum emphasized on easy and active settlement of claim in your case. You are satisfied with the judgment given by Consumer Forum in your case. () () () (0) () () Source Survey, Figures given in brackets are in percentage Scale: A Strongly Agreed, B Somewhat Agreed, C Indifferent, D Somewhat Disagreed and E Strongly Disagreed. T Total, W.S Weighted Scores. Average wise analyzing, % of the respondents were strongly agreed with the statements related with dispute redressal as they expressed their agreement with first content of said statements i.e. strongly agreed. () () () () () () () (0) () () () () () (0) () () () () () () () () () () Average Agreement %.% 0%.% % 0% Page

28 A largest portion i.e..% of respondents expressed some agreement with the said statements as they selected second content of the statements i.e. somewhat agreed. A considerable portion i.e. 0% of the respondents found neither agreed nor disagreed since they marked on the third content of the given statements i.e. indifferent. Of the selected respondents,.% respondents expressed some disagreement with procedural aspects of Consumer Forum as they selected forth content of the statements i.e. somewhat disagreed. Remaining respondents i.e. % were found strongly dissatisfied with all the procedural aspects since they marked on the last content of said statements i.e. strongly agreed. Figure-. F A C T O R S In the figure-., mean scores for all the statements were converted into percentage values and on the basis of percentage values, final inference has been drawn. Rating scale is given at the bottom of the figure and awarded contents to the said statements are placed at the left of above figure. Out of six statements, four statements were rated as being somewhat positive impact namely, () full opportunity was provided and () very supporting and courteous staff, () adoption of great care and caution and () emphasis on easy and active settlement of claim. The respondents revealed some positive impact with above four statements since Page

29 the percentage value of these statements fell in the range from 0.% to 0% and this was assumed to be somewhat positive impact. Remaining two statements were ranted as being not much impact viz. () smooth and fair trial was provided and () adoption of great care and caution during the proceeding. The percentage of these statements found in the range from 0.% to 0% and this range was assumed to be indifferent or not much impact. At the end, it is inferred from above analysis that although consumers were satisfied to some extent with the four statements, but they remained indifferent for remaining two statements. Furthermore, average score (.%) of all the statements was found was in the range from 0.% to 0% and this range was considered as neither good impact nor bad impact. Hence, banking consumers want major improvements in the dispute rerdressal under of Consumer Courts. Specifically, Consumer Forum should emphasis on smooth and fair trial, and should make cautious judgments. Compensatory Impact Table. shows responses regarding banking consumers regarding compensation. It is mentioned clearly under Consumer Protection Act that the dispute redressal machinery is not only preventive and punitive, but also compensatory in nature. So, for analyzing compensatory impact, respondents were asked about whether the compensation was provided to them, if yes, then to what extent and for which losses? Table-. Responses of Banking Consumers regarding Their Own Cases S.N Factors A B C D E T WS Did you receive amount of claim? () () () () () 0. Did you get compensation for mental harassment? () () () () () 0. Did you get litigation cost for lengthy trial? () () () () () 0. Did you get interest for the delayed reimbursement? () () () () () 0. Average Agreement.0% % 0%.0% % 0%. Source Survey, Figures given in brackets are in percentage Page

30 Scale: A Full, More than partial, B partial, C Less than partial and Nothing. T Total, W.S Weighted Scores. A significant portion of banking consumers i.e..0% said that they were given full compensation for the mental harassment, litigation cost, interest for delayed reimbursement and full amount of claim was remitted to them. Although % of the banking consumers were not given full compensation, but certainly, they were given more than half compensation as they selected second content of given variables i.e. more than partial. 0% of the selected respondents were given only partial compensation for the loss suffered by them such as mental harassment, litigation cost and interest for delayed reimbursement as they selected third contents of the given variables i.e. partial. A considerable portion,.0% of them were provided less than half compensation for the loss since they selected forth content of said variables i.e. less than partial. Another considerable portion i.e. % of the respondents was not given any compensation for losses mentioned in table. as they marked on the last content of the variables i.e. nothing. Figure-. F A C T O R S In the figure-., first, mean scores for all the statements have been converted into percentage values and on the basis of percentage values; interpretation of responses has Page

31 been made regarding compensatory impact. Measurement scale is given at the bottom of the figure and awarded contents to the said variables are placed at the left of above figure. Out of four variables of compensation, one variable was rated as being very positive impact, viz. () remittance of claim. Since the percentage value of this variable was beyond 0 percent i.e. % and it revealed that the entire amount of claim was remitted to the consumers. One variable was rated as being somewhat positive impact namely, compensation for litigation cost. Although the full compensation was not provided for this loss, but more than half was given. One variable was rated as being not much impact i.e. () compensation for mental harassment. Since percentage value of this variable was found in the rage from 0.% to 0%. This range indicated that consumers were not satisfied with compensation for mental harassment. Remaining variable was rated as being somewhat negative impact i.e. () compensation for delayed reimbursement. The respondents revealed negative impact for this variable since interest was not provided to them for delayed reimbursement. Conclusively, it is clear from above analysis that entire amount of claim was remitted and more than half of adjudicating compensation for provided for litigation cost, but banking consumers were dissatisfied with the payment of interest because they were not reimbursed for delayed payment. Furthermore, only partial compensation was provided for mental harassment. But average of all the variables was % and this percentage fell in the range from 0.% to 0%, and this range was assumed to be neither positive nor negative impact. Hence, compensation for above mentioned monetary and non-monetary losses should be increased. Impact on Morale To measure the impact on morale of consumers, four questions in statement form were asked to aggrieved consumers and their opinions are recorded in the table.. The frequencies amongst the perceptions of the respondents are displayed in the column from A to E and weighted scores are placed in the last column of above table. Page

32 Table-., Responses of Banking Consumers S.N Factors A B C D E T WS Consumers rights given under CPA are handy weapons in the hands of Consumers. You feel empowered due to Consumer Forum. Consumer Forum is a strong custodian of consumers rights. You will visit Consumer Forum again if you get cheated at market place. Source Survey, Figures given in brackets are in percentage Scale: A Strongly Agree, B Somewhat Agree, C Indifferent, D Somewhat Disagree and E Strongly Disagree T Total, W.S Weighted Scores. Average wise analyzing,.0% of the respondents revealed very strong agreement with all the said statements and they accepted the significance of consumers rights and Consumer Courts provided under CPA since they selected first content of given statements i.e. strongly agreed. Out of total respondents, % respondents expressed some agreement with all the given statements i.e. somewhat agreed. A considerable portion i.e..0% of respondents was neither satisfied nor dissatisfied with given statements since they selected third content of given statements i.e. indifferent. Out of total respondents, % respondents expressed some disagreement with said statements as they selected forth content of given statements i.e. somewhat disagreed. % of selected respondents were strongly dissatisfied with all the given statements since they marked on the fifth content of given statements i.e. strongly disagreed. Figure.given in the next page reveals percentage scores and awarded contents. () (0) () () () (0) () () (0) () () () () () () () () () () () Average Agreement.0% %.0% % % 0% Page

33 Figure-. F A C T O R S Percentage values are given at the right-hand side of figure., rating scale is given at the bottom of the figure and said statements are placed at the left of above figure. Out of selected statements, two of them were rated as being somewhat positive impact, namely, () consumers rights are handy weapons in the hand of consumers and () you would prefer to visit Consumer Forum again if you get cheated at the market place. Remaining two statements were as being not much impact on the morale of consumers viz. () you feel empowered due to Consumer and () Consumer Forum has been an effective custodian of consumer s rights. In nutshell, although baking consumers accepted the significance of consumer rights and certainly they would visit to Consumer Courts again if they get cheated at market place, but they raised doubt over the power of Consumer Forums since they (consumers) remained indifferent for two other statements. Average score (.%) of all the statements was found in the range from 0.% to 0% and this range was assumed to be not much impact. Hence, morale of consumers was not as high as it was expected and that is why it was inferred that consumers want more active and powerful dispute redressal machinery at district level. Page

34 () Impact on Insurance Consumers Procedural Impact Table. reveals the responses of insurance consumers regarding dispute redressal happened in their cases under Consumer Courts. For analyzing the impact, six questions in statement form were asked to consumer having cases against insurance companies. Table-., Responses of Insurance Consumers Regarding Their Own Cases S.N Factors A B C D E T WS Full opportunity was provided to put forward your case in Consumer Forum. Smooth and fair trial was provided in your case under Consumer Forum. Staff of Consumer Forum was very supporting and courteous during the proceeding in your case. Adoption of great care and caution during the proceeding in your case. Consumer Forum emphasized on easy and active settlement of claim in your case. You are satisfied with judgments given by Consumer Forum in your case. Source Survey, Figures given in brackets are in percentage Scale: A Strongly Agree, B Somewhat Agree, C Indifferent, D Somewhat Disagree and E Strongly Disagree. T Total, W.S Weighted Scores. Average wise analyzing, % of the respondents were strongly satisfied with all said statements related with dispute redressal since they revealed their agreement with first content of given statements i.e. strongly agreed. A considerable portion i.e..% of respondents were satisfied to some extent with the said statements as they selected second content of the statements i.e. somewhat agreed. A significant portion i.e..% of the respondents found neither agreed nor disagreed since they marked on the third content of the given statements i.e. indifferent. Of the selected respondents, % respondents expressed some disagreement with procedural aspects of Consumer Forum as they selected forth content of the statements i.e. somewhat disagreed. (0) () () () () () () () () () (0) () () () () (0) (0) (0) () () () () () () () () () () () () Average Agreement %.%.% %.% 0% Page

35 Remaining respondents i.e..% were found strongly disagreed with all the procedural aspects since they marked on the last content of said statements i.e. strongly disagreed. Figure-. F A C T O R S In the figure-., rating scale is given at the bottom of the figure and awarded contents to the said statements are placed at the left of above figure. Out of six statements, four statements were rated as being somewhat positive impact namely, () full opportunity was provided to put forward your case, () very supporting and courteous staff, () emphasis on easy and active settlement of claim and () you are satisfied with the judgment given by Consumer Courts in your case. These statements were rated as somewhat positive impact since the percentage value of these statements fell in the range from 0.% to 0% and this range was assumed to be somewhat positive impact. Remaining two statements were ranted as being not much impact viz. () smooth and fair trial was provided and () adoption of great care and caution during the proceeding. The percentage of these statements found in the range from 0.% to 0% and this range was assumed to be indifferent or not much impact. Page

36 In short, it is inferred from above analysis that although consumers were satisfied to some extent with the four statements, but they remained indifferent for remaining two statements. Moreover, average score (0.%) of all the statements was fell in the range from 0.% to 0% and this range was considered as somewhat positive impact. Overall, insurance consumers revealed positive impact regarding dispute redressal, but still there is a need to make more improvements regarding smooth and fair judgments. Hence, Consumer Forum should emphasis on smooth and fair trial, and should make cautious judgments. Compensatory Impact Table. shows responses regarding compensation. According to Consumer Protection Act, Consumer Courts were established not only to prevent and punish, but also compensating if consumers suffer loss. For analyzing compensatory impact, insurance consumers were asked about whether the compensation was provided to them, if yes, then to what extent and for which factor? Table-., Responses of Insurance Consumers regarding Their Own Cases S.N Factors A B C D E T WS Did you receive amount of claim? Did you get compensation for mental harassment? Did you get litigation cost for lengthy trial? Did you get interest for the delayed reimbursement? Source Survey, Figures given in brackets are in percentage Scale: A Full, More than partial, B Partial, C Less than partial and Nothing. T Total, W.S Weighted Scores. A very significant portion of insurance consumers i.e. % said that they were remitted entire amount of claim including compensation for the mental harassment, litigation cost and interest for delayed reimbursement. These respondents were very pleased with compensatory provision COPRA- since they selected first content of given variables. () () (0) (0) () () () (0) () () () () () () () (0) () () () () Average Agreement % % %.0%.0% 0% Page

37 Although.0% of the insurance consumers were not provided full compensation, but certainly, they were given more than half compensation as they selected second content of given variables i.e. more than partial. Out of total insurance consumers, % respondents were given only partial compensation for the loss suffered by them such as mental harassment, litigation cost and interest for delayed reimbursement as they selected third contents of the given variables i.e. partial. A considerable portion,.0% of them were provided less than half compensation for the loss since they selected forth content of said variables i.e. less than partial..0% of the respondents were not given any compensation for monetary and nonmonetary losses mentioned in table. as they marked on the last content of the variables i.e. nothing. Figure-. F A C T O R S In the figure-., rating scale is given at the bottom of the figure and awarded contents to the said statements are placed at the left of above figure. One factor was rated as being very positive impact namely, () remittance of claimed amount since the percentage value (%) found above 0% and this range was assumed to be very positive impact. Page