IRDAI wants insurers to stick to grievance redressal norms

Order follows cases of complaints from policyholders not being handled in accordance with prescribed norms

Concerned over rising complaints, insurance regulator IRDAI has directed insurers to strictly adhere to guidelines on grievance redressal and review their approach to sensitise staff to handle customers.

The Insurance Regulatory and Development Authority of India (IRDAI) order follows certain cases coming to the fore that complaints from policyholders are not being handled in accordance with the prescribed norms.

IRDAI feels that this is giving rise to "aggravated customer dissatisfaction and escalation of complaints to higher authorities".

"All the insurers are... Advised to ensure that the timeliness stipulated in the regulations and the guidelines are strictly adhered to while handling the complaints/ grievances received from policyholders/ministries/regulators and other statutory agencies," it said, in its order addressed to all insurers.

"It is also noticed that the insurers are found wanting in paying attention, sensitivity and alacrity needed to be shown while attending to the complaints."

According to the guidelines, insurers are required to follow the minimum turnaround time to resolve customer complaints.

"It is also emphasised about the need to review the systems in place to sensitise not only front-line staff but customer service staff/officials at all levels of the organisation on handling policyholder grievances with seriousness, promptness and empathy to enhance the trust and confidence in the insurance sector," it added.