Meera bought a health insurance policy. The agent did not tell her about a condition in the policy under which a claim could be refused. Later, her claim was refused on that ground and she suffered a loss.
Under the Consumer Protection Act, 2019, the agent’s failure to tell Meera about the condition is an example of:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Deficiency
Option (1) Defect — Incorrect. A defect is a fault or shortcoming in relation to goods or a product. Meera bought an insurance policy, which is a service.
Option (2) Deficiency — Correct. A deficiency is a fault or shortcoming in a service. It includes withholding relevant information that causes loss or injury to the consumer. The agent held back a condition of the policy, and Meera lost her claim.
Option (3) Spurious goods — Incorrect. Spurious goods are goods falsely claimed to be genuine. No goods were sold here.
Option (4) Restrictive trade practice — Incorrect. A restrictive trade practice manipulates price or the flow of supplies, so that an unjustified cost falls on the consumer. The agent did not change any price or supply.
Defect and deficiency look alike: a defect is a fault in goods, while a deficiency is a fault in a service.
NCERT (2026-27 Edition): “Terms & Definitions … 3. Spurious goods: Goods that are falsely claimed to be genuine. |