The Finance Ministry has recently declared that the government has amended insurance ombudsman rules and brought insurance brokers within their ambit, allowing policyholders to file online complaints. The amended rules have enlarged the scope of complaints to ombudsmen from only disputes earlier to deficiencies in service on the part of brokers, insurers, agents and other intermediaries.
The timeliness and cost-effectiveness of the mechanism has been substantially strengthened under the amended rules. Policyholders will now be capable of lodging complaints electronically to the ombudsman and a complaints management system will also be created to enable policyholders to track the status of their complaints online.
“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,” the Ministry stated. “A number of amendments have been made for securing the independence and integrity of the ombudsman selection process, while also building in safeguards to secure the independence and impartiality of the appointed persons while serving as Ombudsmen.”
