IRDAI Draft: Internal Insurance Ombudsman for Claims up to ₹50 Lakh
Why in the news
The insurance regulator IRDAI drafted a framework requiring insurers to run an in-house ombudsman for complaints on claims up to ₹50 lakh.
Key facts
- Aim: transparent, fair, time-bound grievance redressal inside insurers, complementing external mechanisms.
- Coverage: all insurers except reinsurers; mandatory after more than three years of operation; several ombudsmen allowed with defined jurisdictions.
- Powers: hears claims up to ₹50 lakh; decisions are binding on the insurer.
| Criterion | Draft norm |
|---|---|
| Entry age | At least 55 years |
| Term | 3 years or age 70, whichever is earlier |
| Experience | 20 years in insurance; post at least two levels below Director |
| Independence | No past or present job with the insurer or its group |
| Reporting | Administratively to MD/CEO; functionally to the Board or PPGR & CM Committee |
Exam angle
- Regulator: IRDAI; claim ceiling: ₹50 lakh; decisions binding on insurer.