A consumer purchased a washing machine for Rs. 45,000. The machine malfunctioned and caused water damage amounting to Rs. 1,20,000. Under the Consumer Protection Act, the consumer is entitled to compensation equal to twice the actual loss. Calculate the total compensation payable by the seller.

Step-by-step solution

1. Identify the actual loss caused by the malfunction: Rs. 1,20,000.
2. According to the Act, compensation = 2 $\times$ actual loss.
3. Multiply: 2 $\times$ 1,20,000 = 2,40,000.
4. Thus the seller must pay Rs. 2,40,000 as compensation.

Concept tested: Compensation under Consumer Protection Act

Published 4 October 2026 · How this solution was prepared and checked