711 Insurance Ombudsman awards pending for compliance
By CL Jose
HYDERABAD/May 27-2022: The insurance regulator, the Insurance Regulatory and Development Authority of India (IRDAI), has come down heavily on insurance companies for non-compliance of awards passed by Insurance Ombudsman within the prescribed timelines.
The regulator said that the failure on the part of the insurers on the issue would be viewed very seriously.
In a statement, IRDAI said that 711 Insurance Ombudsman awards are pending for compliance. “Out of this, 162 awards are pending for more than one year, which is rather unsatisfactory,” IRDA said in a statement issued on Friday.
IRDA sent a strong message to the insurance companies instructing them to settle the pending cases at the earliest.
“Insurers are advised to adhere to the timelines of award settlement as per Rule 17(6) of the Insurance Ombudsman Rules, 2017. In case of appeal against the award issued by the Insurance Ombudsman, the insurers are advised to inform the complainant as per the Authority’s circular,” IRDA statement said.
Insurance companies have also been asked to inform the respective Insurance Ombudsman about the same.
Insurers’ attention was drawn to Authority’s Circular IRDA/CAD/CIR/MISC/038/03/2019 dated March 5, 2019, on the matter, wherein the insurers were cautioned against their failure on compliance.