India Finance Ministry issues advisory on insurance grievance redressal

The Indian Finance Ministry has issued an advisory outlining the formal escalation process for policyholders to redress insurance-related grievances. The advisory follows mandates from the Insurance Regulatory and Development Authority of India (IRDAI) regarding a strict, time-bound resolution process.

Customers facing issues such as unfair claim rejections, service delays, or mis-selling are advised to first contact the Grievance Redressal Officer (GRO) at their respective insurance company. Every insurer is required to designate a nodal officer for these matters and maintain a Board-level Policyholder Protection, Grievance Redressal and Claims Monitoring Committee.

All complaints registered through digital interfaces, correspondence, or call centers must be entered into the insurer’s Complaints Management System (CMS), which is integrated with the IRDAI’s Bima Bharosa Portal. Insurers are required to acknowledge complaints immediately and aim to provide a resolution within 14 days. If a customer is dissatisfied with the insurer's response, they can escalate the matter through the Bima Bharosa Portal.