In order to promote investor protection, the government is considering expand the ambit of the Insurance Ombudsmen Scheme by bringing under its jurisdiction the mis-selling of insurance products.
Mis-selling of insurance policy particularly Unit Linked Insurance Products (ULIPs) has been an area of concern for the regulator.
At present, the jurisdiction of ombudsmen entails partial or total repudiation of claims or any dispute in regard to premium paid or payable in terms of the policy. Besides, it has power to look into cases pertaining to delay in settlement of claims and non-issue of any insurance document to customers after receipt of premium.
During 2010-11, the 12 ombudsmen across India received a total of 21,065 complaints. A policyholder can approach ombudsmen if the grievance has been rejected by the insurance company. The complaint should be filed within a year from the date of rejection by the company.