IRDA plans to redress individual complaints against firms

ET, Dec 28, 2002

First it was only the internal grievance cells in public sector companies that were available to disgruntled customers. Then came the consumer courts, whose scope was extended to adjudicate over insurance companies.

The office of the insurance ombudsman was created for settling grievances for insurance companies. Now the Insurance Regulatory and Development Authority has said that it will take up redressal of individual complaints against insurance companies.

Customers are hopeful that they would now have a better chance of getting their grievances addressed, considering that IRDA wields the power to penalise errant companies.

Earlier the IRDA had prescribed the guidelines for protection for policyholders interest and the guidelines included directions on transparency and prescribed time frame for settlement of claims.

But this is the first time IRDA has said that it will look into individual complaints within the organisation. According to sources, IRDA's move to set up a grievance cell within its own set-up was prompted by the flood of complaints that the authority has been receiving.

A large number of the complaints were against companies which were refusing to accept business such as `act only' cover for motor vehicles. There have also been complaints against companies for non-settlement of claims.

In a recent notice IRDA has said, "Though the system of ombudsman has been established in 12 towns in the country and that system is working reasonably well, of late there have been some complaints received from the members of the public about the delay in the settlement of claims and inattention to the requirements of consumers and customers of the insurance companies.

To take care of such representations, the authority hereby constitutes a cell within its existing organisation which will receive the complaints/grievances and attend to them in as expeditious manner as possible".

The notice points out that while the authority cannot function as an underwriter and decide on issues like the adoption of underwriting practices or the claims procedure it will look into genuine cases of delay in the settlement of public grievances. It may be recalled that the IRDA had prescribed penal interest on the claim amount for delay in settlement of claims.

The cell is constituted of IRDA's internal officers Prabodh Chander, executive director, Randip Singh Jagpal, Anil Kumar Arora and Rashmi Jagdeep Abhichandani all officers of the authority. Consumers will have to address their grievances to the cell in Hyderabad

How to make a complaint ? 

See the link : http://www.policyholder.gov.in/Report.aspx#

IRDA Page http://www.irda.gov.in/ADMINCMS/cms/NormalData_Layout.aspx?page=PageNo225&mid=14.2

                  http://www.policyholder.gov.in/uploads/images/Eng5.jpg

Insurance ombusman in Kolkata 

Ms. Manika Datta

Ms. Manika Datta Insurance Ombudsman, Office of the Insurance Ombudsman, 4th Floor, Hindusthan Bldg. Annexe, 4, C.R.Avenue, Kolkatta – 700 072. Tel:     033 22124346/(40) Fax:    033 22124341 Email:iombsbpa@bsnl.in

http://www.irda.gov.in/ADMINCMS/cms/NormalData_Layout.aspx?page=PageNo234&mid=7.2 and

http://www.irda.gov.in/ADMINCMS/cms/NormalData_Layout.aspx?page=PageNo1357

source : http://articles.economictimes.indiatimes.com/2002-12-28/news/27350941_1_irda-plans-insurance-regulatory-grievances