The Government has finally notified the rules for appointment of the Insurance LokpalInsurance Lokpal as an ombudsman to entertain complaints on any kind of irregularities in life, health or general insurance.
The rules gazetted on April 25 say the ombudsman”s award shall be binding on the insurers, required to comply with it within 30 days. Anyone with experience in the insurance industry, civil, administrative or judicial service is eligible to be selected as the ombudsman. Throughout the gazette notification, he is called ”Lokpal” in Hindi and ”Ombudsman” in English.
The rules lay down that the ombudsman shall entertain partial or total repudiation of insurance claims, delay in settlement, disputes over premium, misrepresentation of policy terms, or any other matter in violation of the Insurance Act, regulations, circulars, guidelines and instructions of the Insurance Regulatory and Development Authority of India (IRDAI).
The ombudsman can also act as a mediator on written consent of the parties to the dispute. The rules lay down the manner in which the complaints are to be made, how the ombudsman will be appointed and removed.