IRDAI issues direction to insurers to submit the compliance of awards passed by Ombudsman

Mar 05, 2019 | by Avantis RegTech Legal Research Team

The Insurance Regulatory and Development Authority of India (IRDAI) on March 05, 2019, issues direction to all Insurers to submit data pertaining to compliance of awards passed against them by Insurance Ombudsman. 

The Insurance Ombudsman Rules, 2017 mandates insurers to comply with the awards passed by Insurance Ombudsman within a period of 30 days of receipt of award. But it has been noticed that insurers are neither complying with the awards, nor filing appeals within 60 days of receipt of awards. The insurers are not mentioning the reasons for pendency for each award separately while submitting the statement, and few are not even submitting statements as prescribed under the Rules, 2017.

For these reasons, the insurers who are not submitting the statements or not complying with the awards as prescribed under Insurance Ombudsman rules, 2017, will be viewed very seriously. The non-compliance of these awards within the timelines prescribed would severely undermine the grievance redressal framework laid down and will cause undue hardships to the policyholder.

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