Definition
Grievance Redressal
Grievance redressal is the structured process for policyholders to raise and resolve complaints against insurers.
IRDAI requires every insurer to have a grievance redressal mechanism with defined turnaround times. A policyholder first complains to the insurer; if unresolved or unsatisfactory, the complaint can be escalated to IRDAI's Bima Bharosa (formerly the Integrated Grievance Management System) portal and then to the Insurance Ombudsman.
This tiered system gives consumers an accessible, low-cost path to justice for issues like claim delays, repudiation and mis-selling, before resorting to consumer courts. Effective grievance redressal is a key plank of IRDAI's policyholder-protection mandate.
Related terms
- Insurance OmbudsmanThe Insurance Ombudsman is a quasi-judicial authority that resolves policyholder complaints against insurers quickly and at no cost to the complainant.
- IRDAIIRDAI is the Insurance Regulatory and Development Authority of India, which regulates and supervises the insurance industry and protects policyholders.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.