In the draft norms released late Wednesday, The Insurance Regulatory and Development Authority of India (IRDAI) proposed setting up of an independent and impartial review mechanism for all insurance companies.
The internal ombudsman would have an independent oversight reporting directly to the board or committee and will have the power of deciding in complaints where the amount does not cross Rs 50 lakh.
“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,” IRDAI said.
It further said that by institutionalising this internal but independent mechanism, Irdai aims to further improve the quality of grievance handling and enhance overall consumer confidence in the insurance sector.
