- The amendments are made with an aim to improve the working of the Insurance Ombudsman mechanism and to have a resolution of complaints in the insurance sector in a timely, impartial and cost-effective manner.
- The amended rules are having an enlarged scope of complaints to Ombudsmen, focusing on the part of insurers, agents, brokers and other intermediaries. Earlier the scope of complaints was limited to only disputes.
- The Insurance broker is also brought under the Ombudsman mechanism and the Ombudsmen will now have the power to pass awards against insurance brokers as well.
- The Ombudsman mechanism which was managed and administered by the Executive Council of Insurer, upon amendments it is renamed as Council for Insurance Ombudsmen.
- Now, the complaints can be made in an electronic manner to the Ombudsman, this will lead to having timely execution of complaints and in a transparent manner as well.
- To track the status of the execution of complaints, the complaint management system will also be framed.
- Also, the Ombudsman can use the video-conferencing medium to hear the cases.
