Archive · 26 Jul 2025
India: Insurance Firms May Get In-House Complaint Officers
The insurance regulator in India wants insurance companies to have their own complaint resolvers, called internal ombudsmen, inside the company.
If you're not happy with how your claim is handled, and the company hasn't answered in a month, you can go to the internal ombudsman.
They will make a decision the company must follow, up to a certain amount of money.
This should make solving problems quicker and easier for you.
IRDAI proposes internal ombudsmen within insurance companies to resolve disputes.
The internal ombudsmen will handle complaints unresolved within 30 days.
Decisions by the ombudsmen will be binding on the insurer for claims up to ₹50 lakh.
The ombudsmen will report to the board and be independent of routine claims departments.
Public comments on the proposal are invited until August 17, 2025.
- Who
- Insurance Regulatory and Development Authority of India (IRDAI) and insurance companies.
- What
- IRDAI proposes internal ombudsmen in insurance companies to handle complaints.
- When
- Public comments accepted until August 17, 2025; implementation timeline not specified.
- Where
- India
- Why
- To improve grievance resolution and reduce backlogs in the insurance sector.
Proponents
Concerns
Efficiency of Dispute Resolution
Proponents
Internal ombudsmen will be a faster, more efficient method to resolve disputes.
Concerns
External ombudsmen handle insurance disputes, which often leads to long wait times and unresolved issues.
Transparency & Trust
Proponents
Internal ombudsmen will help build greater trust and transparency within the insurance ecosystem.
Concerns
Much depends on the actual implementation, transparency in decision-making and how well companies separate this function from routine claims departments.
- Regulatory Body
- IRDAI
- Complaint Deadline (if no response)
- 30 days
- Maximum Claim Value for Ombudsman Decision
- ₹50 lakh
- Feedback Deadline
- August 17, 2025
- Ombudsman Reporting Structure
- Board of Directors and MD/CEO
