INSURANCE
IRDAI proposes internal ombudsman for insurers to address claims up to Rs 50 lakh
Jul-24-2025

With an aim to improve the quality of grievance handling and to boost overall consumer confidence in the insurance sector, Insurance Regulatory and Development Authority of India (Irdai) has proposed a framework mandating appointment of an internal insurance ombudsman for insurers. IRDAI has proposed the establishment of an independent and impartial review mechanism within insurers to address unresolved or escalated complaints in a fair, transparent, and time-bound manner.

Applicable to all insurers (except reinsurers) with more than three years of operations, the framework mandates the appointment of an internal insurance ombudsman to address complaints involving claims up to Rs 50 lakh. 

Insurers may also appoint more than one internal insurance ombudsman, with well-defined jurisdiction, to ensure effective coverage and responsiveness. The proposed guidelines lay down the eligibility criteria, tenure, independence, role and responsibilities and remuneration structure of internal insurance ombudsman, along with general principles to be followed by them.

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