Question: On March 2, 2021, The Union Government has amended the “Insurance Ombudsman Rules, 2017”. Consider the following statements about it-
i) Insurance brokers have been brought under the supervision of the Ombudsman mechanism.
ii) Policyholders can now make complaints electronically to Ombudsman.
Which of the above two statements are correct?
a) only i
b) only ii
c) both i and ii
d) none
Ans: c
Context
- The Union Government has amended the “Insurance Ombudsman Rules, 2017” on March 2, 2021.
Facts
- The amended rules have enlarged the scope of complaints to Ombudsmen from only disputes earlier to deficiencies in service on the part of insurers, agents, brokers and other intermediaries.
- Further, insurance brokers have been brought within the ambit of the Ombudsman mechanism, by empowering the Ombudsmen to pass awards against insurance brokers as well.
- Under the amendment, timeliness and cost-effectiveness of the entire mechanism has been substantially strengthened. Policyholders will now be able to lodge complaints electronically to the Ombudsman.
- A new Complaints management system will be created to enable policyholders to track the status of their complaints online.
- The rules also provide that, ombudsman can use video-conferencing to hear the cases.
- In case there is vacancy in office of any particular Ombudsman, then to enable access to relief under the Ombudsman mechanism additional charge will be given to another Ombudsman.
- As per the amendment, selection committee will now comprise of an individual having a track record of promoting the consumer rights or is advancing cause of consumer protection in insurance sector.
- Under the amendments; the Executive Council of Insurers, who manages the ombudsman mechanism, have been renamed as Council for Insurance Ombudsman.
By kameshwar shukla