Union Government amends Insurance Ombudsman Rules- Better Resolution of policy holders: On March 2, 2021, the government published substantive amendments to the Insurance Ombudsman Regulations, 2017, with the aim of strengthening the Insurance Ombudsman’s ability to address complaints about insurance service failures in a timely, cost-effective, and unbiased manner.
The revised rules also broadened the reach of grievances to Ombudsmen from previously narrow conflicts to include service violations by insurers, agents, brokers, and other intermediaries. Furthermore, insurance brokers have been included in the framework of the Ombudsman mechanism, with the Ombudsmen being able to pass awards against them as well.
The mechanism’s timeliness and cost-effectiveness have been greatly enhanced under the new regulations. Policyholders will be able to send complaints to the Ombudsman electronically, and a complaints management system will be built such that policyholders can monitor the status of their complaints online. In addition, the Ombudsman can hold hearings via video conferencing. to make it possible.
A variety of changes have been made to ensure the independence and dignity of the Ombudsman selection process, as well as protections for the named persons’ independence and impartiality when serving as Ombudsmen. In addition, the selection committee will now include those with a track record of upholding consumer rights or fighting for consumer protection.