IRDA and the Insurance Ombudsman
The Insurance Regulatory and Development Authority (IRDA) - External website that opens in a new window) was established by an Act of Parliament known as the IRDA Act, 1999 (ZIP - 32.4KB). The mission of the IRDA is to protect the interests of the policyholders, to regulate, promote and ensure systematic growth of the insurance industry and other connected matters.
The position of Insurance Ombudsman (External website that opens in a new window) was created by a Government of India Notification in November 1998. The main function of this Ombudsman is to quickly dispose the grievances of insured customers and lessen the problems involved in redressing complaints. This institution is vital and relevant to protect the interests of policyholders and also shape their belief in the system. The existence of an Insurance Ombudsman has helped generate and sustain faith and confidence amongst both consumers and insurers alike.
Ombudsmen are chosen from various fields such as the Civil Services, Insurance Industry and Judicial Services. They are appointed for a term of three years or till they turn sixty-five years of age. Currently there are twelve Insurance Ombudsmen appointed in different parts of the country. They all have defined jurisdictions.
The main acts governing insurance are The Insurance Act 1935 (WORD - 942KB), IRDA Act 1999 (ZIP - 32.4KB) and the IRDA (micro-insurance) Regulations 2005 (PDF file that opens in a new window) . More information about other rules and regulations(External website that opens in a new window).
Source: National Portal Content Management Team, Reviewed on: 10-02-2011