ANNUAL REPORT 2007-08
principles, including regulatory responses used to address those challenges as well as particular principles that have been implemented less widely. The draft is under consultation.
v) Public Grievances
The Grievance Cell of IRDA receives complaints from policyholders, insurance intermediaries and from other sources against different Life Insurance companies. On receipt of the complaints the cell functions in two ways:
facilitates an early resolution of the complaint by the insurer through direct interaction with the policyholder and
analyses the complaints based on:
duration of disposal
The insurer wise analysis for duration of complaints evaluates the effectiveness and simplicity of the process adopted by the insurer in handling the complaints. It also evaluates how insurer is complying with the provisions of Regulation 5 of IRDA (Policyholders’ Interests) Regulations, 2002. The Regulation requires speedy and efficient handling of the complaints by the insurer.
The analysis of the complaints based on functional area indicates:
The weakness in market practices
The inadequacies of the insurance companies - which may require regulatory intervention for necessary corrective action.
The Grievance cell plays a facilitative role by registering the complaint and tracking down the same with the insurer for its early resolution. In case of dispute on any issue between the insurer and the complainant, the cell informs the complainant to take up the matter with quasi judiciary (insurance ombudsman / consumer forums) or judiciary bodies, since IRDA does not have the power of adjudication.
Grievances cell of the Authority receives grievances from the policyholders against the insurance companies. Such complaints are forwarded to the companies for resolution at their end. When the grievances are resolved by the companies they are expected to inform the grievances cell of the Authority about its resolution or otherwise. As on March 31, 2007, there were 299 complaints pending with the Authority for want of resolution by life insurance companies. During the year 2007-08, the Authority has received 2057 complaints, out of which, 651 related to LIC and 1406 to private sector insurers.
57 per cent of the total complaints received against life insurers by the IRDA during the year 2007-08 were resolved by the former. While the private life insurers resolved 78 per cent of the complaints registered, LIC had resolved only 19 per cent of the complaints filed against them with the Authority. As on March 31, 2008, 1017 complaints were pending with the insurance companies for resolution, out of which 332 belonged to private sector and 685 pertained to LIC.
Total No of
TABLE 50 OUTSTANDING GRIEVANCES —LIFE INSURERS
LIC Private Total
Note: * includes those resolved from outstanding as on 31.3.2007.
During the year 2007-08, IRDA received 651 complaints against LIC and 1406 complaints against all the private life insurers put together. Out of those, LIC could resolve only 80
complaints (12 per cent) while the private life insurers could resolve 1100 complaints (78 per cent).