Insurance Ombudsman in India, an Alternative Mechanism for Disputes Resolution: A Critical Analysis

The Insurance Ombudsman Rules, 2017 provide a cost-free and informal alternative for Indian policyholders. This paper investigates whether this mechanism is an adequate remedy in law. By studying the Insurance Ombudsman Rules and the statistics released by the Council for Insurance Ombudsmen for 2023–24, and by examining parliamentary records and recent High Court rulings, the paper finds four gaps in the process: the lack of a defined line between an enforceable award and a mediated recommendation, a review mechanism that pushes claimants to seek redress through the writ jurisdiction, the unresolved issue of limitation and parallel forums, and the unwieldy way in which outcomes are reported. Comparison with the Financial Ombudsman Service in the UK reveals several solutions to these problems. The paper makes recommendations regarding rule amendments as well as the introduction of an innovative model of community assistance.