IRDAI – Insurance Ombudsman Rules, 2017 – Salutary amendment to raise ceiling on award of compensation is raised from “Rs.30” lakhs to “Rs.50” lakhs vide notification dated 9.11.2023.

IRDAI – Insurance Ombudsman Rules, 2017 – Salutary amendment to raise ceiling on award of compensation is raised from “Rs.30” lakhs to “Rs.50” lakhs (including relevant expenses, if any ) vide notification dated 9.11.2023.

Insurance Ombudsman Rules were framed in 2017 to resolve all complaints of all personal lines of insurance, group insurance policies, policies issued to sole proprietorship and micro enterprises on the part of the insurance companies, their agents and intermediaries in a cost effective and impartial manner.

Rule 17 provided for Award of the Ombudsman on the pleadings and evidence on record.

However, clause (ii) of proviso to sub-rule (3) of Rule 17 provided that the shall not award compensation exceeding rupees thirty lakhs (including relevant expenses, if any).

Now, by the Notification of 9.11.2023 and the Amendment of 2023, this ceiling is raised to “Fifty Lakhs rupees”.

बीमा लोकपाल (संशोधन) नियम, 2023 _ Insurance Ombudsman (Amendment)Rules, 2023.pdf