FinMin proposes Rs 80k salary a month for insurance ombudsman

NEW DELHI: The government has proposed Rs 80,000 per month salary for insurance ombudsmen on the pattern of high court judges, whose pay was revised last year.

"Ombudsman shall be allowed a fixed pay of Rs 80,000 per month and any pension to which he is entitled from the Central Government or a state Government or any other organisation or institution shall be deducted from his salary," the Finance Ministry said in a draft. Suggestions or any objections to the proposal are invited by May 19 this year.

The Insurance ombudsmen are entitled to get a salary, which is equal to the salary of a judge of a high court, as per the Redressal of Public Grievances Rules, 1998.

However, last year, the salary of judges of the High Courts and the Supreme Court was revised. As per the revised pay scales, Judges of the High Courts will draw a salary of Rs 80,000 per month plus Dearness Allowance.

Insurance ombudsmen are authorised to handle complaints of aggrieved insured persons.

They are empowered to receive and consider complaints from any person who has any grievance against an insurer.

However, ombudsman's powers are restricted to insurance contracts of value not exceeding Rs 20 lakhs. Insurance firms are required to honour the awards passed by an Insurance Ombudsman within three months.