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A warranty is the manufacturer or seller's promise to stand behind a product. Warranties vary in the extent of coverage that they provide.
It is important that just as you compare the price and other characteristics of products before you buy, you must also compare warranties.
Seven years' protection, five years' warranty or four years' guaranteed service are some of the claims made to lure consumers.
When you buy a car or a home appliance, besides the warranty you may be offered a service contract. Although often called 'extended warranties', service contracts are not warranties.
Warranties are included in the price of the product but service contracts come separately at an extra cost. At the time of purchase, the consumer should decide whether he needs a service contract.
Most gadgets are given a warranty only for one year of free service and or replacement depending upon what is spelt out in the contract of warranty.
The further period of two, four or six years is under warranty only if the purchaser has entered into a separate service contract and paid for the same at the time of purchase.
Choklingam, the proprietor of Malanadu Printers, purchased a photo-typesetting machine manufactured by Monotype India for Rs 1,015,093.
The machine developed defects and on the advice of the manufacturer, the purchaser spent Rs 60,000 to install an uninterrupted supply equipment.
Despite this, the machine did not work properly. The manufacturer had claimed in its brochures that it would provide excellent after-sales services.
The first fault to be reported was rectified after 27 days and a sum of Rs 2,909 was charged. On the next occasion, the company claimed a sum of Rs 10,000 for inspecting the machine and another sum of Rs 8,500 towards the engineer's travel expenses and visiting charges.
Choklingam filed a consumer complaint before the Tamil Nadu State Commission against the manufacturer, claiming compensation of Rs 10 lakh, though he alleged that he had suffered a loss of Rs 1,641,514.
The Commission dismissed the complaint as the warranty period had expired. An appeal against the above order was filed before the National Commission, which dismissed the same.
Satinder Singh Sobti of Ludhina, who purchased a Godrej refrigerator on February 19, 1988, faced a similar problem. The refrigrator had a one-year warranty.
In 1993 the refrigerator's compressor developed defects and needed replacement. Sobti was asked to pay for the compressor. Aggrieved by the company's stand , Sobti filed a complaint claiming the cost of the compressor and damages of Rs 10,000.
The District Forum, Ludhiana, held the manufacturer not liable to provide any relief after the one-year warranty expired as Sobti had not entered into service contract covering a further four years.
On appeal the state commission, however, held Godrej liable for indulging in unfair trade practice in not providing services as understood by customers.
The National Commission in revision held that as no separate service contract was entered into for providing services after the expiry of 12 months, the complainant could not claim any free service.
No one ever reads warranties which are couched in tricky language and fine print. A consumer feels that in the event of his car not working during the warranty period, he can not only claim the replacement of the parts and fee services but can also claim the consequential damages. Invariably, warranties exclude such damages and no claim is allowed.
In order to minimise problems relative to the non-performance of warranties, consumers would be well advised to keep in mind the following:
Consider the reputation of the company offering the warranty.
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