Miffed by the non-compliance of insurers with awards of insurance Ombudsman, IRDAI has cautioned insurance companies of serious action if they fail to honour the awards passed by the judicial body within 30 days.
In a circular issued today, IRDAI said, “All Insurers are hereby cautioned that non submission of statements prescribed under circular and non-compliance of awards by insurers within the timelines prescribed under Insurance Ombudsman rules, 2017 will be viewed very seriously.”
IRDAI found that many insurance companies are not complying with the orders and awards of insurance Ombudsman. “Many insurance companies are neither complying with the Ombudsman orders nor filing appeals within 60 days of a receipt of awards,” said IRDAI.
IRDAI further said that a few insurance companies have not even mentioned the reason for such a delay or non-compliance.
IRDAI norms say that insurance companies will have to honour Ombudsman awards within 30 days. In case the time frame is not given by judicial body, insurers have been mandated to comply within 60 days from the date of such orders. If insurers don’t want to settle the order, they will have to clarify their stand within the stipulated time to the complainants.