Zomato has been ordered by the Chandigarh consumer commission to provide ₹10,000 and a free meal to an unhappy customer.
The customer in question had placed an order for pizza through the Zomato app back in 2020 and had paid ₹287 after opting for the company’s “on-time or free“ service.
When his order was cancelled 15 minutes later, he was utterly disappointed. So much so that he took the matter to court.
Although the refund had been initiated, the customer felt that Zomato had been gravely deficient in rendering their services.
Dissatisfied customers filing lawsuits is not an uncommon occurrence in the service industry. And that’s why corporations like Zomato opt for a Professional Indemnity Insurance policy to manage this risk.
Professional Indemnity Insurance helps companies recover financial losses arising out of lawsuits claiming negligence or misconduct in their services.
What this means is that if Zomato was protected under this policy, it would not have to pay the ₹10,000 fine out of pocket.
Everything from court expenses and lawyer fees, to payable damages can be reimbursed under Professional Indemnity Insurance.