Latest news with #InternalInsuranceOmbudsmanGuidelines
The Hindu
4 days ago
- Business
- The Hindu
IRDAI moots internal insurance ombudsman mechanism for complaints in upto ₹50 lakh claims
Insurance regulator IRDAI is proposing an internal ombudsman mechanism in insurance companies to address complaints involving claims up to ₹50 lakh. It will applicable to all insurers, except reinsurers, who have been in operation for more than three years. The objective is to set up an independent and impartial review mechanism within insurers to address unresolved or escalated complaints in a fair, transparent and time-bound manner, the Insurance Regulatory and Development Authority of India (IRDAI) said, placing an exposure draft of the Internal Insurance Ombudsman Guidelines, 2025, for public consultation. Insurers may appoint more than one internal insurance ombudsman, with well-defined jurisdiction, to ensure effective coverage and responsiveness. The draft guidelines stipulates eligibility criteria, tenure, independence, role and responsibilities and remuneration structure along with general principles to be followed by the internal ombudsman. Towards strong governance and oversight, it is proposed that the internal insurance ombudsman will functionally report to the Board or its Policyholder Protection, Grievance Redressal and Claims Monitoring Committee, with administrative reporting to the MD/CEO. By institutionalising such an internal but independent mechanism, it sought to further improve quality of grievance handling and enhancing overall consumer confidence in the insurance sector, IRDAI said. The guidelines will come into force after three months from the date of issue. The internal ombudsman will consider complaints to which the insurer has not responded within 30 days of the receipt; or the partly or wholly rejected complaints on which the complainants preferred an appeal. Customers not satisfied with the decision of the internal ombudsman can within 30 days, of the decision, prefer an appeal before the Insurance Ombudsman. IRDAI's proposal represents a significant shift in existing in-house grievance redressal structures to a more independent decision governing body. This is a progressive step, Bharti AXA Life Insurance MD and CEO Parag Raja said, welcoming the move. This will further create a shift from the current complaint management mechanism to fairer disposal of cases providing customers one more layer to appeal and the insurer a fair third-party view. It will reduce the burden on the external ombudsman. Bharti AXA Life was among among the first few to appoint an internal insurance ombudsman, he said.
Time of India
5 days ago
- Business
- Time of India
Irdai proposes internal ombudsman for insurers to address claims up to Rs 50 lakh
Irdai on Wednesday proposed a framework mandating appointment of an internal insurance ombudsman for insurers to address complaints involving claims up to Rs 50 lakh. The Insurance Regulatory and Development Authority of India (Irdai), which released the exposure draft of the Internal Insurance Ombudsman Guidelines, 2025, has proposed the establishment of an independent and impartial review mechanism within insurers to address unresolved or escalated complaints in a fair, transparent, and time-bound manner. Explore courses from Top Institutes in Please select course: Select a Course Category Product Management PGDM Project Management Management Operations Management Healthcare Data Science Leadership MBA Others Finance MCA Artificial Intelligence Cybersecurity Design Thinking Data Analytics Degree CXO Data Science Public Policy Digital Marketing healthcare Technology others Skills you'll gain: Creating Effective Product Roadmap User Research & Translating it to Product Design Key Metrics via Product Analytics Hand-On Projects Using Cutting Edge Tools Duration: 12 Weeks Indian School of Business ISB Product Management Starts on May 14, 2024 Get Details Skills you'll gain: Product Strategy & Roadmapping User-Centric Product Design Agile Product Development Market Analysis & Product Launch Duration: 24 Weeks Indian School of Business Professional Certificate in Product Management Starts on Jun 26, 2024 Get Details Skills you'll gain: Product Strategy & Competitive Advantage Tactics Product Development Processes & Market Orientations Product Analytics & Data-Driven Decision Making Agile Development, Design Thinking, & Product Leadership Duration: 40 Weeks IIM Kozhikode Professional Certificate in Product Management Starts on Jun 26, 2024 Get Details "Applicable to all insurers (except reinsurers) with more than three years of operations, the framework mandates the appointment of an internal insurance ombudsman to address complaints involving claims up to Rs 50 lakh," it said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 68-Year-Old Woman From Chicago With Baby Face. See What She Does AntiAging Tricks Try Now Undo Insurers may also appoint more than one internal insurance ombudsman, with well-defined jurisdiction, to ensure effective coverage and responsiveness, said the draft on which Irdai has invited comments till August 17. The proposed guidelines lay down the eligibility criteria, tenure, independence, role and responsibilities and remuneration structure of internal insurance ombudsman, along with general principles to be followed by them. Live Events "To reinforce strong governance and oversight, it is proposed that the internal insurance ombudsman shall functionally report to the board or its policyholder protection, grievance redressal and claims monitoring committee, with administrative reporting to the MD/CEO," Irdai said. It further said that by institutionalising this internal but independent mechanism, Irdai aims to further improve the quality of grievance handling and enhancing overall consumer confidence in the insurance sector.
