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Consumer Commission Upholds Rights: Car Service Centre to Pay 31 Lakhs for Flood Damages

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Consumer Commission Upholds Rights: Car Service Centre to Pay 31 Lakhs for Flood Damages

A Landmark Ruling in Rangareddy District, Hyderabad

The Case and the Complaint

A car owner in Hyderabad filed a complaint after their luxury vehicle, worth 51 lakhs, was severely damaged at a service centre during the October 2020 floods. The car, purchased in 2015, was brought in for repairs in September 2020 with an initial estimate of 2.7 lakhs. However, due to delays in procuring spare parts, the car remained at the service centre when the unprecedented rains hit Hyderabad.

The Escalating Repair Estimate

Following the floods, the repair estimate escalated dramatically to 50.4 lakhs, almost equivalent to the car’s original purchase price. The service centre initially tried to deflect responsibility, suggesting the owner claim insurance coverage, where the car’s Insured Declared Value (IDV) was 21.8 lakhs.

The Commission’s Ruling

The Rangareddy District Consumer Disputes Redressal Commission found merit in the complainant’s argument that the service centre was negligent in safeguarding the vehicle during the floods. The ruling stated that service providers cannot use natural calamities as an excuse to escape liability when vehicles are under their custody. The order noted that the service centre’s failure to take adequate precautions to protect the vehicle, despite weather warnings, constituted a clear deficiency in service.

The Compensation Directive

  • While the commission dismissed claims against the car manufacturer and dealership, it directed the car service centre to pay 31 lakhs as compensation.
  • The order also allows the service centre to claim the IDV amount from the insurance company, with the complainant’s cooperation required for necessary documentation.

A Win for Consumer Rights

This ruling strengthens consumer rights, holding service providers accountable for the safety and well-being of vehicles under their care, even during natural calamities.

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