The Insurance Regulatory and Development Authority of India (IRDAI) has released an Exposure Draft for the Internal Insurance Ombudsman Guidelines, 2025. This initiative aims to establish an independent review mechanism within insurance companies to address unresolved customer complaints. The proposed guidelines mandate the appointment of an Internal Insurance Ombudsman by all insurers (excluding reinsurers) with over three years of operation. This ombudsman will handle complaints concerning claims up to Rs. 50 lakh. The framework outlines eligibility, tenure, independence, responsibilities, and remuneration for the ombudsman, who will functionally report to the insurer’s Board or its designated committee. The IRDAI’s objective is to enhance the quality of grievance resolution and increase policyholder trust in the insurance sector. The draft is open for public consultation, with stakeholders invited to submit feedback by August 17, 2025.
Insurance Regulatory and Development Authority of India
PRESS RELEASE | 23rd JULY 2025
Exposure Draft of Internal Insurance Ombudsman Guidelines, 2025
A Step Towards Enhancing Grievance Redressal and Policyholder Trust
As part of its continued endeavour to strengthen the policyholder protection and enhance trust in the insurance ecosystem, the Insurance Regulatory and Development Authority of India (IRDAI) has released the Exposure Draft of the Internal Insurance Ombudsman Guidelines, 2025 for public consultation.
The draft guidelines propose the establishment of an independent and impartial review mechanism within insurers to address unresolved or escalated complaints in a fair, transparent, and time-bound manner. Applicable to all insurers (except reinsurers) with more than three years of operations, the framework mandates the appointment of an Internal Insurance Ombudsman to address complaints involving claims up to ₹50lakh. Insurers may also appoint more than one Internal Insurance Ombudsman, with well-defined jurisdiction, to ensure effective coverage and responsiveness.
The guidelines comprehensively lay down the eligibility criteria, tenure, independence, role & responsibilities and remuneration structure of Internal Insurance Ombudsman along with general principles to be followed by the Internal Insurance Ombudsman. To reinforce strong governance and oversight, it is proposed that the Internal Insurance Ombudsman shall functionally report to the Board or its Policyholder Protection, Grievance Redressal and Claims Monitoring Committee, with administrative reporting to the MD/CEO.
By institutionalizing this internal but independent mechanism, IRDAI aims to further improve the quality of grievance handling and enhancing overall consumer confidence in the insurance sector. The exposure draft is available on the IRDAI website (www.irdai.gov.in), and stakeholders are invited to submit their comments and suggestions by 5:00 PM on 17th August, 2025.
R K Sharma
Chief General Manager
