As per insurance regulator IRDAI, insurers are yet to comply with 711 insurance ombudsman awards (or orders) against them. Out of this, 162 awards are pending for over one year. IRDAI has now asked insurers to settle awards (that is, pay compensation to aggrieved policyholders) pending for over 30 days. To lodge their complaints, policyholders have to first reach out to their insurers before approaching ombudsman offices, which will pass orders within three months. Post this, copies are sent to complainants and insurance companies, which have to comply within 30 days. Else, they have to pay penalty of the prevailing bank rate (4.65 percent at present) plus 2 percent per annum for the period of delay.
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