Blog Details

The Insurance Regulatory and Development Authority of India (IRDAI) has introduced a draft for a new rule aimed at making insurance claim complaints faster and easier to solve. The draft, called the Internal Insurance Ombudsman Guidelines 2025, was released on July 24, 2025.

What’s the Big Change?

Under this new rule, every insurance company that has been operating for more than three years must appoint an internal ombudsman. This person will handle customer complaints related to insurance claims up to ₹50 lakh. The goal is to solve problems inside the company quickly so customers don’t have to wait long or go to outside offices or courts.

How Will It Work?

Each insurance company will have at least one internal ombudsman. If needed, companies can appoint more ombudsmen for different regions to speed things up. These ombudsmen will report directly to the Managing Director (MD) or CEO for daily work, but for important matters, they will be accountable to the company’s Board or a special committee focused on protecting policyholders. This system is meant to keep the ombudsman independent and trustworthy.

Why Is This Important?

The new rules aim to build trust between customers and insurance companies by making complaint handling quicker and more fair. It will reduce delays in settling claims and avoid long legal battles. Insurance companies will also become more responsible for solving customer problems.

Details and Feedback

The draft includes details like the qualifications, job term, salary, and duties of the internal ombudsman. IRDAI is welcoming suggestions and feedback from the public until 5 PM on August 17, 2025. The draft can be found on IRDAI’s official website.

This move is part of IRDAI’s bigger plan to protect insurance policyholders and make the system work better for everyone.