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Amount limit for claim settlement with Insurance Ombudsman has been increased. Insurance Ombudsman offices across the country will now be able to handle complaints related to claims up to Rs 50 lakh. Earlier, these offices were only allowed to take complaints up to Rs 30 lakh. Recently the Finance Ministry has changed the rules for this. Companies involved in the insurance sector and officials associated with the Office of the Insurance Ombudsman have been demanding an increase in this limit for a long time.
Grievances will be resolved soon: Experts associated with the insurance sector say that this change will speed up disposal of complaints involving large sums, which will bring great relief to the policy holders. At present they have to go to consumer court for this. It used to take one to two years to resolve complaints. Complaints are disposed of in ombudsman office within three months.
Insurance companies are required to comply with the Ombudsman’s decision within 30 days. If this does not happen, the insured can report to the Office of the Ombudsman. In such a situation insurance companies may have to pay interest.
Option of consumer court shall be open: Experts say that if a consumer is not satisfied with the decision of the insurance ombudsman in a high claim case, he will have the option of going to the consumer court.
Settlement required within 90 days: Before filing a complaint with the Ombudsman, the insured has to submit a written complaint to the concerned company. After this he has to wait for 30 days. If there is no response from the insurance company, then a complaint can be filed in the Ombudsman office. The Ombudsman is required to dispose of the complaint within 90 days.
Complaint can be made online: If the claim is rejected, the insured person can file a complaint with the Insurance Ombudsman office of his city. Complaints can also be made online. For this you have to go to www.cioins.co.in/Complaint/Online. A complaint must be filed within one year of the claim being denied.
Increased tendency to buy policies with higher cover: Experts say that there is an increased trend among people to take higher amount insurance policies. Which includes term insurance, health insurance, emergency insurance and accident insurance of more than 1 crore rupees. According to a study, the highest earners in the financial year 2022-23 will spend Rs. 1.75 crore showed more interest in buying a cover policy.
92 percent of cases resolved: According to the data, a total of 55,946 complaints were received from all the 17 insurance ombudsman offices located across the country during the financial year 2022-23. Out of them 51,625 i.e. 92.28 percent were disposed. The Delhi Center disposed of all 5,257 complaints received.