Scheme working well in insurance, banking

If numbers are anything to go by, then the banking and insurance ombudsmen seem to be working well. They have disposed of around 85 per cent of the complaints they received each year.

In 2007-08, the 15 banking ombudsmen received 54,992 complaints, of which 49,100 or 81 per cent, were cleared. Similarly, the insurance ombudsmen disposed of 83.93 per cent of the 12,116 complaints filed with them in 2006-07, the latest period for which data are available.

However, the fact is that a large number of complaints filed were rejected by the ombudsmen.

For instance, the insurance ombudsmen did not entertain 44 per cent cases. Add to that cases that were dismissed (nearly 11 per cent), withdrawn (over 21 per cent) or not accepted (2.66 per cent). That leaves only 21 per cent of the complaints, which got an award or recommendation from the ombudsmen.

In case of banks, the position looks better, with 36 per cent complaints rejected and 53 per cent cases disposed of through mutual settlement or an award.

The main reason for rejection was that complainants had approached the ombudsman before asking the bank concerned to address the grievance, a banker said. Thus, 40 per cent of the cases rejected fell in this category in 2007-08, while another 16 per cent were cases made without sufficient cause.

While the Insurance Regulatory and Development Authority (Irda) did not provide detailed numbers, the ombudsmen have been putting more emphasis on settlement between the complainant and banks.

“Banking ombudsman does not force parties to settle but a conciliation meeting gives them a chance to come to their own solution rather than have a solution imposed on them. Most of the complainants have conveyed that no officer in the bank was designated to listen to their woes,” said the Reserve Bank of India (RBI), while pointing out that in most cases, it was the first meeting between the bank and the customer.

As far as time consumed in clearing cases is concerned, 16 per cent of complaints were outstanding at the end of March 2007 in the case of insurance ombudsmen, while for banks, 11 per cent of cases were carried to the next year.