The Insurance Regulatory and Development Authority of India has issued an exposure draft of the Internal Insurance Ombudsman Guidelines, 2025 for public consultation, proposing an internal but independent review mechanism within insurers to address unresolved or escalated policyholder grievances in a fair, transparent and time-bound manner. The framework would apply to all insurers except reinsurers with more than three years of operations and would mandate the appointment of an Internal Insurance Ombudsman to handle complaints involving claims up to INR 50 lakh. Insurers could appoint more than one Internal Insurance Ombudsman with defined jurisdiction, and the draft sets out eligibility criteria, tenure, independence requirements, roles and responsibilities, and remuneration structure. The Internal Insurance Ombudsman would functionally report to the Board or its Policyholder Protection, Grievance Redressal and Claims Monitoring Committee, with administrative reporting to the Managing Director or Chief Executive Officer. Comments and suggestions on the exposure draft are due by 5:00 PM on 17 August 2025.
Insurance Regulatory and Development Authority of India 2025-07-23
Insurance Regulatory and Development Authority of India consults on Internal Insurance Ombudsman Guidelines requiring insurers to handle escalated complaints up to INR 50 lakh
The Insurance Regulatory and Development Authority of India has released an exposure draft of the Internal Insurance Ombudsman Guidelines, 2025, for public consultation. The guidelines propose an independent review mechanism within insurers to address policyholder grievances, applicable to insurers with over three years of operations, excluding reinsurers. The draft outlines the appointment, roles, and reporting structure of the Internal Insurance Ombudsman, handling claims up to INR 50 lakh.