IRDAI concerned over rising customer complaints

Expressing concern over rising customer complaints, the Insurance Regulatory and Development Authority of India (IRDAI) chairman Ajay Seth on Wednesday underscored the need for the insurance companies to significantly improve the quality and timeliness of resolutions.

The insurers were urged to adopt a more proactive, policyholder-centric approach and strengthen their internal systems to ensure strict compliance with prescribed timelines, IRDAI said after he chaired a meeting with Chief Compliance Officers and Grievance Redressal Officers of all insurers.

Insurers were advised to develop a clear and standardised operating procedure for classifying consumer references into complaints and service requests. Mr.Seth emphasised the centrality of trust in insurance and the critical role played by compliance and grievance redressal functions in upholding the trust, the insurance regulator said in a release.

“Compliance cannot be a department— it must be a mindset. And grievance redressal cannot be the end of a process — it must be our early warning system. When in doubt, choose the customer. If we do that consistently, trust will follow, growth will follow and the industry will stand stronger than ever,” Mr. Seth said.

A review of compliance practices and effectiveness of existing grievance redressal mechanisms was undertaken at the meeting whose discussions centred on strengthening policyholder protection, improving grievance redressal standards and addressing operational challenges faced by the insurance sector.

The Authority also engaged with the Insurance Ombudsmen from Bhopal and Thane, who presented the operational issues and challenges observed in handling cases filed at their respective offices. An analysis of consumer complaints and emerging trends in policyholder issues shaped the conversation, highlighting areas where the industry must enhance its responsiveness, IRDAI said.

The Chairman highlighted the complementary roles of CCOs and GROs, calling them the “conscience and credibility” of insurance companies. The meeting opened with the Mr.Seth extending greetings on the Constitution Day, underscoring the significance of the Constitution and its values of justice, equality, and liberty.