The Insurance Regulatory and Development Authority of India on 26th May 2022, has directed the Insurers to ensure settlement of all Insurance Ombudsman awards pending for more than 30 days.
The Authority conducted a comprehensive review of the pending cases of all the offices of the Insurance Ombudsman. As per the data received from the Insurance Ombudsman Council, there are a total of 711 Insurance Ombudsman Awards which are pending for compliance, out of which 162 awards are pending for more than a year.
Therefore, insurers are advised to adhere to the time limit for adjudication settlement as per Rule 17(6) of the Insurance Ombudsman Rules, 2017. In case of appeal against the award issued by the Insurance Ombudsman, the insurers are advised to inform the complainant accordingly.
Rule 17 of the Insurance Ombudsman Rules, 2017 deals with the adjudication in which sub clause (6) states that “The insurer shall comply with the award within thirty days of the receipt of the award and shall inform the Ombudsman of its compliance”.
