The institution of Insurance Ombudsman was established in 1998 by the Government of India for the purpose of addressing complaints of aggrieved insured persons. The claimants who fail to get their complaints redressed by insurers may approach the respective Ombudsman Institutions in their States for relief. The institution of Insurance Ombudsman plays a significant role in the protection of interests of policy holders building confidence amongst the consumers and insurers. Insurance Ombudsman are taken in from the Insurance Industry, Civil Services and Judicial Services. The governing body of insurance council issues orders of appointment of the insurance Ombudsman on the recommendations of the committee comprising of Chairman, IRDA, Chairman, LIC, Chairman, GIC and a representative of the Central Government. An insurance Ombudsman is appointed for a term of three years or till the incumbent attains the age of sixty five years, whichever is earlier. Re-appointment of Ombudsman is not permitted. The insurance industry has Ombudsman in 12 cities of India. The Insurance Ombudsman is empowered to settle disputes related to the following issues: (a) repudiation of Claim (b) dispute with regard to premium to be paid or payable in terms of the policy, (c) dispute on policy wording (d) delay in settlement of claims, and (e) non-issuance of insurance document.
