Insurance ombudsman says it has no data on awards granted

Mumbai, Mar 2, 2024 

The Council for Insurance Ombudsmen has said that it has no data on insurance companies' compliance with the awards made in respect of consumer complaints. In response to an RTI query, the CIO stated a lack of information on fulfilled and pending awards.

The CIO oversees 17 Insurance Ombudsman offices nationwide. Unlike courts, Ombudsman awards are binding on insurers, but the office lacks the power to seize insurer property for non-compliance.

However, industry officials said that the regulator can take action against companies for non-compliance.

Ombudsmen spoke to TOI said that non-compliance is a rare event. However, TOI has reported a case where the Ombudsman's office informed claimants that it lacks authority post-award and suggests recourse to a judicial forum.

Activist Jeetendra Ghadgeof the Young Whistleblowers Foundation, who filed the RTI query, said, "Thousands are being denied their rightful insurance claims on completely fraudulent grounds." He questioned the purpose of approaching the ombudsman if insurance companies are not held accountable for non-compliance.

Ghadge suggested that Irdai should publish a list of insurance companies that have not complied with the awards and recommendations of the ombudsman to help citizens make informed decisions about their insurance needs. Incidentally, the IRDAI, in response to an RTI query by Ghadge, said that "no disciplinary action has been taken by IRDAI on any insurance company so far on the grounds of non-compliance of Insurance Ombudsman award/order."

[The Times of India]