The District Consumer Commission ruled that abruptly cancelling a flight without offering alternate travel options, along with rejecting an insurance claim, amounted to a “deficiency in service,” and held both the airline and the insurance provider responsible.
The commission ordered the insurance company to pay Rs 50,000 in total to two city residents, along with interest at 9 per cent per year starting from August 20, 2021, the date when the complaint was filed.
Consumer Commission Holds Airline and Insurer Liable for “Deficiency in Service” Over Cancelled Flight and Rejected Claim
In addition to this amount, the commission instructed that the extra money the complainants spent on purchasing alternative flight tickets must be reimbursed.
Both the airline and the insurance company were also jointly directed to pay Rs 9,000 as compensation.
The complainants, Sanjeev Jain and Rinki Jain, stated that they had booked a morning flight from Surat to Delhi scheduled for 7.45 am on August 25, 2019, with an expected arrival at 9.30 am, but the flight was cancelled, causing significant inconvenience.
They explained that no rescheduling option was available within 24 hours of departure, which forced them to buy alternative tickets for the same day at a cost of Rs 5,400 per person.
Because of the flight cancellation, they had to cancel their train tickets from Delhi to Phagwara, which led to an additional financial loss of Rs 1,730.
The couple claimed that although they emailed the airline on August 28, 2019, requesting a refund and compensation, they did not receive a satisfactory reply.
In response, Air India argued that ensuring passenger safety is the highest priority and that even minor technical issues can require a flight to be cancelled, stating that safety concerns take precedence over financial considerations.
The airline also mentioned that the original ticket fare had been refunded in April 2021 and denied that there had been any deficiency in service.
ICICI Lombard General Insurance, the insurer involved, maintained that the domestic travel policy held by the complainants was valid only for August 25, 2019.
Insurance Company Defends Claim Rejection Over Missing Required Documents
The insurer further stated that the claim was rejected because the complainants did not submit necessary documents, including a letter from the airline, despite being asked to provide them in January 2020.
After reviewing the case records, the commission concluded that the sudden cancellation without alternative arrangements and the rejection of the insurance claim indeed amounted to a “deficiency in service.”
The commission clarified that while consumers are not entitled to double compensation for the same loss, they do have the right to be indemnified for their actual damages.
As a result, the commission directed the airline to refund the additional amount spent on alternative tickets after adjusting the amount already returned, ordered the insurance company to pay Rs 25,000 each to the two complainants under the policy (totalling Rs 50,000), and instructed both parties to jointly pay Rs 9,000 as compensation.
