Consumer Issues
DERC penalises Tata Power-backed discom

Tata Power Delhi Distribution has been asked to pay Rs19,000 for failing to provide electricity connection to a consumer within 30 days

New Delhi: Delhi Electricity Regulatory Commission (DERC) has imposed a penalty of around Rs19,000 on Tata Power Delhi Distribution Ltd (TPDDL) for failing to provide electricity connection to a consumer within the prescribed time limit of 30 days, reports PTI.

 

The order by DERC, which is a quasi-judicial body, came in response to a petition filed against TPDDL by Vijender Kumar Sharma, a resident of Tri Nagar in East Delhi.

 

In the order, the DERC said Sharma had applied for a new connection on 3 September 2011, and as per Delhi Electricity Supply Code and Performance Standards Regulations, 2007, it should have been provided within one month of filling of the application.

 

The Tata Power-backed company has been asked to pay a fine of Rs15,000 to DERC and an amount of Rs4,158 to the complainant as compensation.

 

When asked, a TPDDL official said the company would fully comply with the DERC order.

 

As per the order, Sharma was given the connection on 17th January -- 99 days after filling of the application -- which is a violation of the provisions of the laid down norms.

 

The DERC said as per the regulations, an application is deemed appropriate if no deficiency was intimidated to a consumer within three days of receipt of the same.

 

Though the time limit for giving connection to an applicant is 30 days, the maximum time frame in the case should have been 37 days of filling of the application as the complainant delayed paying the required fee by a week, said the DERC in its order dated 4th September.

 

The TPDDL argued that the connection could not be given as there were anomalies in the information and documents provided by the complainant, including failure on part of Sharma to provide translated and authenticated copy of the documents relating to title of the property and no objection certificate from the legal heirs.

 

The company said the applicant had completed the formalities only on 8 December 2011 and the connection was given on 17th January. It also told the DERC that some of the documents supplied by the applicant were in Urdu which delayed processing of the application.

 

However, DERC rejected the arguments, saying if a consumer is not intimated about the deficiencies within three days of receiving the application it will be deemed to have been accepted by the discom.

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IRDA's draft proposal for insurance cover to BPL families

The insurance regulator would prescribe annual targets for insurance companies so that they can provide insurance cover to entire population under the BPL category over next five years

 
New Delhi: The Insurance Regulatory and Development Authority (IRDA) has come with a draft proposal to expand the reach of insurance cover to families in the below poverty line (BPL) category over the next five years, reports PTI.
 
"The target group shall be the BPL population... Each insurer shall prescribe the target in proportion to their market share. IRDA shall prescribe annual target so as to cover entire BPL population in the next five years,"  the insurance regulator said in its draft.
 
The standard insurance product would be in addition to the government schemes, which provide insurance cover at concessional rates.
 
"This product would facilitate supplementing or topping up of any existing social security benefit and would not overlap with such benefits," it added.
 
IRDA said a lead life insurer should tie up with a non-life insurer or vice-versa for the benefit of the people.
 
These standard products should include minimum sum assured of Rs40,000 for life term cover and up to Rs2 lakh.
 
The products may be extended to the family members and the period of cover shall be between 5 years and 25 years.
 
During the years 2012-18, all the insurers shall fulfil at least 50% of the target group through the standard product sales and the remaining 50% may be fulfilled by any other approved rural and social sector products, it said.
 
The policy conditions and prospectus should be clear, simple and transparent language should be used without vague and ambiguous statements considering the target market, it added.
 
In its 'Composite Package of Standard Insurance Product for Rural and Social Sector' IRDA said weaker sections should be provided cover to meet the exigencies cast by natural catastrophes, accidental death, protection means for the family as well as to promote some savings to bolster their financial security.
 
The IRDA said it has made the standard product more flexible and simple and aims to provide comprehensive package of insurance covers to these sections.
 
It further said "the product will have defined options and levels to provide choice and flexibility to customers in order to cater to individual circumstances".
 
It has also invited stakeholders comment on the exposure draft within 30 days.
 

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SEBI releases new info on redressal mechanism

SEBI said an investor can reach out to the regulator for grievances against a listed company on issues like refund, allotment, bonus, dividend, rights, redemption, prelisting offer documents of shares, debentures and bonds, delisting of securities, buyback of securities, corporate governance and listing conditions

 
Mumbai: Market regulator Securities and Exchange Board of India (SEBI) released a fresh set of information for new investors on redressal mechanism for complaints related to price manipulation, insider trading and other issues, reports PTI.
 
According to the fresh set of information, if an investor has grievances against a listed company or intermediary registered with SEBI, he/she should first approach the concerned company or intermediary against whom he has complaints.
 
In case the person is not satisfied with their response, he may approach SEBI for grievances such as price manipulation, insider trading, Mutual Funds, Depository and Depository Participants.
 
The information is part of the revised instruction form book issued by Depository Participants to investors.
 
Depository is an organisation where the securities of a shareholder are held in the electronic form and Depository Participant is an investor's representative in the depository system who maintains securities account balances.
 
Besides, investors can also approach SEBI about compalints related to KYC Registration Agency (KRA)-- that conduct know your client (KYC) related functions on behalf of various market entities-- and alternative investment fund (AIF), which are funds incorporated in India for the purpose of pooling in of capital from Indian and foreign investors for investing as per a pre-decided policy.
 
Other complaints relates to venture capital funds, foreign institutional investors (FII), merchant bankers, credit rating agencies, collective investment schemes, debenture trustees, underwriters and custodian of securities.
 
SEBI said an investor can reach out to the regulator for grievances against a listed company on issues like refund, allotment, bonus, dividend, rights, redemption, prelisting offer documents of shares, debentures and bonds, delisting of securities, buyback of securities, corporate governance and listing conditions.
 
The regulator advised depositories to make amendments to the relevant bye-laws, rules and regulations for the implementation the new rules and disseminate the same information on their website.
 

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