If you are stuck in such a situation, here is what to do.

Mr. Rohan Sharma, a resident of Amanpur, decided to renew his car insurance policy through an online portal called ‘DigitalWheels Insurance’. On June 15th, he completed the transaction, and the premium amount was instantly debited from his bank account. He received a payment confirmation but not the policy document. The app status for his policy simply showed “Processing”. A week passed, and the status remained unchanged. Concerned, Mr. Sharma tried contacting their customer support daily through the app, but he only received automated responses stating, “A technical error has occurred,” with no option to chat with an agent or raise a formal complaint ticket. He was left in a precarious position—he had paid for insurance but had no policy document, effectively leaving his vehicle uninsured and his money in limbo.

Advice in such cases

When you find yourself in a situation where you’ve paid for a service, like an insurance policy, but the provider fails to deliver, it’s crucial to act systematically.

• Document Everything: Take screenshots of the payment confirmation, the transaction ID, the “processing” status on the app or website, and any attempts to contact customer support. Keep all emails and messages saved.
• Formal Communication: Find a formal customer support email address on the company’s website and send a detailed complaint. Clearly state the issue, attach all evidence, and specify your demand: either the immediate issuance of the policy or a full refund.
• Send a Legal Notice: If the company remains unresponsive, the next step is to have a lawyer send a formal legal notice. This is often enough to compel the company to resolve the matter promptly.
• Consumer Complaint: You can file a complaint against the company for “deficiency in service” with the appropriate Consumer Dispute Redressal Commission. This can be done online.
• Insurance Ombudsman: You can also approach the Insurance Ombudsman, a body dedicated to resolving disputes between policyholders and insurance companies in a time-bound manner.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think

Applicable Sections of Law

Such cases primarily fall under consumer and contract law, but criminal law can also be invoked if fraudulent intent is evident.

• The Consumer Protection Act, 2019: This is the primary legislation. The failure to provide the policy after accepting payment is a clear case of “deficiency in service.” The Act empowers consumers to seek redressal, including refunds and compensation.
• The Indian Contract Act, 1872: The transaction constitutes a contract. The company’s failure to deliver its part of the agreement (the policy) after you have fulfilled yours (payment) is a breach of contract.
• Bharatiya Nyaya Sanhita, 2023 (BNS): If there is evidence to suggest that the company had a dishonest intention from the beginning to take your money without providing a policy, it could amount to cheating under Section 319 of the BNS.

If you are the complainant

As the person who has been wronged, your goal is to get the service you paid for or get your money back, along with compensation for the harassment.

• Organize Your Evidence: Create a file with all payment receipts, screenshots, email communications, and a timeline of events.
• Draft a Clear Complaint: Whether you are writing to the company, the consumer forum, or the ombudsman, your complaint should be clear, concise, and supported by evidence.
• Follow the Procedure: Each redressal mechanism has a specific procedure. A legal notice must be sent before approaching a consumer court in some cases. Ensure you follow the correct steps.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think

If you are the victim

Recognizing you are a victim of deficient service or potential fraud is the first step. You have rights that are protected by law.

• Act Immediately: Do not wait for weeks hoping the issue will resolve itself. The longer you wait, the more difficult it can be to gather evidence and the longer you remain without insurance coverage.
• Create a Paper Trail: Shift from in-app chats to formal emails. An email serves as stronger evidence of your attempts to resolve the issue.
• Explore All Avenues: Don’t just rely on one method. You can simultaneously send a legal notice and file a complaint with the Insurance Ombudsman.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think

How the police behave in such cases

Approaching the police should be considered if you suspect a large-scale fraud. However, for an individual case of service deficiency, the police may be hesitant to intervene.

• Civil vs. Criminal: The police will likely view this as a civil dispute or a consumer complaint rather than a criminal offence, unless you can provide strong evidence of fraudulent intent (e.g., the company is fake, or many others have been similarly duped).
• Guidance to other Forums: They will most probably direct you to file a complaint with the Consumer Dispute Redressal Commission or seek a civil remedy through the courts.
• FIR for Cheating: If you insist on filing a criminal complaint, they might register an FIR under Section 319 of the BNS (Cheating) after a preliminary inquiry to establish if a cognizable offence is made out.

FAQs people normally have

Here are some common questions that arise in these situations.

What evidence is required?

The stronger your evidence, the better your chances of a favorable outcome. You will need:

• Proof of payment (bank statement, UPI transaction ID, payment confirmation email/SMS).
• The initial policy proposal or application form.
• Screenshots of the app/website showing the “processing” status.
• Copies of all communications sent to the company (emails, letters, chat logs).
• A copy of the legal notice sent, if any, along with its postal receipt.

How long will the investigation take?

The timeline varies depending on the path you choose:

• Legal Notice: A company usually responds within 15 to 30 days of receiving a legal notice.
• Insurance Ombudsman: This body aims to resolve complaints within 3 months.
• Consumer Commission: The process can be longer, often taking anywhere from 6 months to over a year, depending on the complexity and the caseload of the commission.
• Police Investigation: If an FIR is filed, the investigation timeline is governed by the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS), but practical timelines can vary significantly.

Advocate Sudhir Rao, Supreme Court of India