Govt changes insurance dispute rules, empowers system to protect interests of policyholders
The new rules enlarge the scope of complaints to Ombudsmen from mere disputes between insurers and the insured to deficiencies in service on the part of insurers, agents, brokers and other intermediaries.
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UPDATED: March 3, 2021 08:07 IST
In a significant move, the new rules bring insurance brokers within the ambit of the Ombudsman (Representational image)
To facilitate speedy and cost effective resolution of complaints regarding deficiencies in insurance services, the Centre on Tuesday notified amendments to the Insurance Ombudsman Rules.
The new rules enlarge the scope of complaints to Ombudsmen from mere disputes between insurers and the insured to deficiencies in service on the part of insurers, agents, brokers and other intermediaries.
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
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
Insurance: Now file your complaints electronically to Ombudsman
March 03, 2021
New amendment rules provides for a complaints management system to track status of complaints online
Individual insurance policyholders may soon have a better deal when it comes to addressing their grievances around deficiencies in services on part of insurers, agents, brokers, and other intermediaries.
This is because the latest amendments to the Insurance Ombudsman Rules, notified by finance ministry on Tuesday, has enlarged the scope of complaints to Ombudsmen from only disputes earlier to deficiencies in service.
The Department of Financial Services in the Finance Ministry has brought comprehensive amendments to the Insurance Ombudsman Rules 2017 with a view to improve the working of the Insurance Ombudsman mechanism to facilitate resolution of complaints regarding deficiencies in insurance services in a timely, cost effective and impartial manner.
Insurance ombudsman rules amended for timely complaint resolution
The policyholders can now make complaints electronically to ombudsman and a complaints management system will be created to enable policyholders to track the status of their complaints online.
BusinessToday.In | March 3, 2021 | Updated 16:36 IST
Insurance brokers have also been brought under the ambit of ombudsman mechanism.
The government on Wednesday notified the amendment to Insurance Ombudsman Rules, 2017 to improve the mechanism for timely, cost-effective and impartial resolution of complaints regarding deficiencies in insurance services. 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, the Finance Ministry said in a statement.