(1) In case any customer or consumer has suffered any kind  of loss and damage as the distributor or employee of the distributor has carried out the work against the interest of customer and consumer, the concerned customer or consumer may claim compensation from the distributor pursuant to Section 4 of the Act.
(2) For the purpose of assessing amount of compensation upon making inquiry into the compensation claimed by the customer or consumer with regard to the loss and damage so suffered pursuant to Sub-rule (1), a Committee shall be constituted under the a Chairpersonship of the Chief District Officer consisting of the representative of the Ministry of Water  Resource and the representative of distributor in each district.
(3) In case the committee pursuant to Sub-rule (2) has found that the customer and consumer has really suffered loss and damage upon making inquiry pursuant to the said Sub-rule, the Committee shall decide to compensate upto one hundred thousand rupees from the distributor and such decision shall be final.
(4) The distributor shall have to provide compensation within three months from the date of decision of compensation made by the Committee pursuant to Sub-rule (3).