Definition
Insurance Ombudsman
The Insurance Ombudsman is a quasi-judicial authority that resolves policyholder complaints against insurers quickly and at no cost to the complainant.
Set up under the Insurance Ombudsman Rules, the ombudsman handles grievances such as claim repudiation, delay in settlement, premium disputes and mis-selling, for personal-line policies up to a prescribed value. A policyholder can approach the ombudsman after the insurer fails to resolve the complaint within a set period.
The ombudsman's award is binding on the insurer (within the monetary limit) but the policyholder remains free to pursue courts. It offers an accessible, free alternative to litigation, and the Bima Bharosa (formerly IGMS) portal helps register and track such grievances.
Related terms
- Grievance RedressalGrievance redressal is the structured process for policyholders to raise and resolve complaints against insurers.
- 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.