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| Government amends Insurance Ombudsman Rules for better resolution of policyholders’ complaints regarding insurance service deficiencies |
New Delhi (Lisbon Times):- The Government on 2nd March 2021 notified comprehensive amendments to the
Insurance Ombudsman Rules, 2017, with a view to improving the working of the
Insurance Ombudsman mechanism to facilitate the resolution of complaints regarding
deficiencies in insurance services in a timely, cost-effective, and impartial
manner.
The amended rules have
enlarged the scope of complaints to Ombudsmen from only disputes earlier to
deficiencies in service on the part of insurers, agents, brokers, and other
intermediaries. Further, insurance brokers have been brought within the ambit
of the Ombudsman mechanism, by empowering the Ombudsmen to pass awards against
insurance brokers as well.
Under the amended
rules, the timeliness and cost-effectiveness of the mechanism has been
substantially strengthened. Policyholders will now be enabled for making
complaints electronically to the Ombudsman and a complaints management system
will be created to enable policyholders to track the status of their complaints
online. Further, the Ombudsman may use video-conferencing for hearings. To
enable access to relief through the Ombudsman mechanism even when there is
vacancy in the office of a particular Ombudsman, provision has been made for
giving additional charge to another Ombudsman, pending the filing of the
vacancy.
A number of amendments
have been made for securing the independence and integrity of the Ombudsman the selection process, while also building in safeguards to secure the independence
and impartiality of the appointed persons while serving as Ombudsmen. Further,
the selection committee will now include an individual with a track record of
promoting consumer rights or advancing the cause of consumer protection in the
insurance sector.
The Ombudsman a mechanism was administered by the Executive Council of Insurers, which has been
renamed as the Council for Insurance Ombudsmen.
Click here to view Official Gazette Notification.
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