Insurance Regulatory and Development Authority of India signals forthcoming guidelines on internal ombudsmen and highlights grievance redressal performance in Bima Lokpal Day address

In his Bima Lokpal Day address, the Insurance Regulatory and Development Authority of India (IRDAI) Chairman set out priorities on policyholder protection, with a focus on improving grievance and claims outcomes and strengthening the role of the Bima Lokpal (Insurance Ombudsman) framework. The speech also flagged forthcoming IRDAI guidelines to encourage insurers to appoint internal ombudsmen, following an exposure draft that has already been issued. The address cited FY 2024-25 premiums of over INR 11.93 lakh crore, including nearly INR 8.86 lakh crore from life insurance, and claims honoured of nearly INR 8.36 lakh crore. General and health insurers settled 3.26 crore health insurance claims during 2024-25 and paid INR 94,247 crore. Grievances registered via IRDAI’s Bima Bharosa platform totalled 2.57 lakh in the past year, with an industry resolution rate above 99%, alongside calls for stronger governance, clearer communication and responsible selling to reduce complaints. The Ombudsman network now has 18 offices, with the 18th office opened at Thane, and complaints rose to 53,230 in FY 2023-24 from 52,300 in FY 2022-23, with 54% relating to health insurance; around 33,000 hearings were held, mostly online, and online complaint registration increased substantially. The Chairman also pointed to the use of grievance analysis and predictive tools for early warning signals and noted that, in health insurance, the amount settled in full is sometimes lower than expected and is being monitored. Comments received on the internal ombudsmen exposure draft are under examination, and IRDAI indicated it will issue the necessary guidelines after considering that feedback.