The Ministry of Finance (MOF) on November 25, 2025, issued a draft notification proposing amendments to the Insurance Ombudsman Rules, 201,7 under the powers granted by Section 24 of the Insurance Regulatory and Development Authority Act, 1999. These draft rules have been published for public consultation, and stakeholders likely to be affected may submit objections or suggestions within 45 days from the date of public availability of the draft.
The draft amendments introduce significant changes, including replacing the term “Ombudsman” with “Insurance Ombudsman”, expanding references to include insurance brokers, inserting new definitions such as Appellate Authority (AA) and reaffirming the role of IRDAI. Amendments also modify membership references, clarify eligibility criteria for appointment, and update procedural provisions regarding vacancies, postings, and oversight by the Council for Insurance Ombudsmen. Several rule modifications relate to terminology, governance structure, and updating authoritie,s such as substituting references to the Chairman of LIC with CEO & MD, LIC.
The Central Government will consider all objections received within the prescribed period before finalising the rules for publication in the Official Gazette. Once finalised, these amendments aim to enhance the clarity, efficiency, and administrative robustness of the Insurance Ombudsman mechanism, strengthening grievance redressal for policyholders and aligning terminology and structures with current regulatory frameworks.
[Notification No. G.S.R. 864(E)]
