The Act was passed to (i) Provide for better protection of the interests of consumers, and (ii) Make provision for establishment of consumer council and other authorities for the settlement of consumer’s disputes. Insurance has been defined as a service for the purposes of the act. Every buyer of insurance is a consumer. The Act has been amended by the Consumer Protection (Amendment) Act, 2002. The Act provides for the establishment of Consumer Disputes Redressal Agencies at three levels viz., the District Forum at the District level to entertain a complaint if the value of the service and the compensation claimed is less than Rs. 25 lacs. ; the State Forum at State level who has original, appellate and supervisory jurisdiction. It would entertain appeals from the District Forum. It has original jurisdiction to entertain complaints where the value of service and compensation claimed exceed Rs. 25 lacs but does not exceed Rs. 1 crore. The Apex body viz., the National Consumer Forum is the final authority established under the Act. It will have the original, appellate as well as supervisory jurisdiction. It would hear the appeals from the order passed by the State Commission and in its original jurisdiction it will entertain disputes, where services and the compensation claimed exceeds Rs. 1 crore. It has supervisory jurisdiction over State Commission. An appeal shall lie with Supreme Court of India. The Forums have been vested with the powers of a Civil Court under the Civil Procedure Code, 1908.