A consumer bought a refrigerator for ₹75,000. After 1 year, the refrigerator broke and damaged the floor costing ₹80,000. The consumer claims compensation equal to twice the actual loss and files the complaint with the District Commission. What is the total compensation payable considering the jurisdictional limit?
Answer
₹1,00,000
The correct answer is ₹1,00,000 — Therefore compensation payable = ₹1,00,000.
Step-by-step solution
- Actual loss = ₹80,000.
- Compensation = 2 × ₹80,000 = ₹1,60,000.
- District Commission can award up to ₹1,00,000.
- Therefore compensation payable = ₹1,00,000.
Common mistake: Neglecting the ₹1 lakh jurisdictional ceiling
Concept tested: Compensation calculation under jurisdiction
Published · How this solution was prepared and checked
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