Penalty proposed for violating insurance redressal norms

Insurance ombudsmen have recommended a penalty provision against insurers for not complying with the norms related to redressal of public grievances.

"The Rules for Redress of Public Grievances (RPG) are going to be amended. In our feedback to the government, we have asked there should be a reviewing authority in cases of dissatisfaction. And there should be a provision for penalising the insurance companies in case they are not complying with it," Sandhya Baliga, Insurance Ombudsman, Delhi, told PTI.

The Delhi Office of Insurance Ombudsman today received the distinction of first insurance ombudsman office being certified as ISO 9001:2015.

An ISO certification is conferred based on quality services, including strong customer focus, motivation, continual improvement and review.

Baliga said when she took over the ombudsman office in July there were 4,000 insurance cases up for redressal.

"So we thought that we must dispose of the old cases that were pending for over two years whereas the turnaround time was 90 days. So to systematise that, getting an ISO certification was the best method," she said.

Established under the RPG 1998, the Office of Insurance Ombudsman deals with consumer complaints against insurance companies operating in general and life insurance.

There are 17 offices of Insurance Ombudsman across the country.