IRDA to setup a Grievance Cell
Aug 24, 2000

Author: PersonalFN Content & Research Team

Now a harassed insurance policyholder can fight for his rights against the government backed institutions. Surprised! You need not be, as Insurance Regulatory and Development Authority (IRDA) is currently setup a grievance cell led by a high level committee for handling consumer grievances and protecting policy holders' interests in order to sort out any discrepancies arising at the time of claim settlement.

There is no sovereign agency in the country today which handles the grievances of insurance policy holders. The grievance cell of Life Insurance Corporation (LIC) tackles all the grievances pertaining to life insurance whereas grievances falling under general category are taken care off by the General Insurance Corporation (GIC).

The move is expected to bring some relief to individual policyholders, as they will be able to knock the doors of an outside agency to seek justice.

The insurance regulatory body is in the process of setting up various cells to hear grievances at the regional, zonal and at board level. While the regional and zonal level committees will consist of executives of insurance companies, the board level committees will consist of high-level people from the legal profession.

According to industry sources, the other legal channel for redressal like consumer courts will also be made available to policyholders. IRDA is expected to announce the final guidelines for surveyors (for assessing loss) shortly.

In the draft guideline, the regulator has stipulated a set of regulations and qualifications for becoming surveyors. The guideline is expected to plug loopholes and streamline the operation of surveyors in India.

In the draft regulation for surveyors, IRDA has said there would be a surveyor and a loss assessor committee constituted by the regulator to advise it on insurance surveyors and loss assessors.

The committee is expected to consist of an IRDA official, a person to represent the interests of the profession, a representative from insurance companies, a representative from the chambers of commerce and a person representing the interests of policyholders.