Miffed by the non-compliance of insurers with judicial bodies, IRDAI has issued a circular in which it has asked insurance companies to comply with the orders and awards passed by consumer forums, insurance ombudsman and Motor Accident Claims Tribunals (MACT).
The insurance regulator has received complaints from policyholders that many insurance companies are not paying attention to the orders and awards of these judicial bodies. In the circular, IRDAI said, “IRDAI has been receiving complaints from policyholders against the insurers regarding non-compliance of orders/awards passed by judicial bodies. Considering the fact that the complainant is already aggrieved, further delay in compliance of the order/award by the insurer causes undue hardship to the complainant.”
IRDAI has asked insurers to comply with such orders and awards within the stipulated time frame. In case the time frame is not given by judicial bodies, 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.