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 ombudsman and policyholders that many insurance companies are not complying with the orders and awards of these judicial bodies. In the circular, IRDAI said, “IRDAI has been receiving communications from certain Ombudsman to its notice the inordinate delay on the part of the insurance companies to implement the orders/awards of the Insurance Ombudsman. Similar complaints have also been received from the aggrieved policyholders on the issue.”
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.
In order to ensure compliance, the insurance regulator is planning to seek details of awards which are pending for compliance since the last three years. Also, IRDAI may request ombudsman office to share monthly statement on the status of compliance of its awards by the insurers.
