IRDAI Tightens Timelines for Insurer Responses Before Insurance Ombudsmen

The Insurance Regulatory and Development Authority of India (IRDAI) has issued a significant directive to all insurers (excluding re-insurers) through Circular No. IRDAI/PP&GR/CIR/MISC/95/07/2026 dated July 23, 2026. The circular aims to streamline and expedite the handling of complaints by the Offices of the Insurance Ombudsman by imposing stricter timelines and process discipline on insurers regarding Self-Contained Notes (SCNs) and supporting documentation.

This move directly targets the recurring problem of delayed and fragmented submissions by insurers, which has been hampering the timely resolution of grievances raised by policyholders and beneficiaries. The guidance is anchored in the framework of the Insurance Ombudsman Rules, 2017, particularly Rule 15(2) and Rule 17(4).

Background: Concerns Raised by Insurance Ombudsmen

Feedback from Orientation Programme

In a recent Orientation Programme conducted for Insurance Ombudsmen (IOs), IRDAI received pointed feedback highlighting systemic delays by insurers in:

  • Filing Self Contained Notes (SCNs)
  • Providing supporting records and documents
  • Supplying additional or follow-up information called for by the Offices of the Insurance Ombudsman

IOs reported that:

  1. SCNs and documents were often submitted after considerable delay.
  2. Information demanded by IOs was frequently provided in multiple instalments rather than in a consolidated manner.
  3. Follow-up documents and clarifications were similarly delayed, leading to protracted proceedings.

Impact on Policyholder Grievance Redressal

These practices directly affected the efficiency of the grievance redressal mechanism, resulting in:

  • Slower disposal of complaints filed by policyholders and beneficiaries
  • Potential denial or postponement of justice to aggrieved parties
  • Administrative inefficiencies at the Ombudsman level

Given that the Insurance Ombudsman mechanism is intended to be a swift, cost-effective, and consumer-friendly forum, IRDAI considered it necessary to prescribe clear and binding timelines for insurers’ participation in the process.

Role of Rule 15(2)

Rule 15(2) of the Insurance Ombudsman Rules 2017 empowers the Insurance Ombudsman to call for documents, information, and records from the insurer in connection with a complaint. This provision is critical for:

  • Allowing the Ombudsman to fully understand the facts of the case
  • Ensuring that both sides of the dispute are placed on record
  • Facilitating an informed and reasoned decision

Time Limit Under Rule 17(4)

Rule 17(4) of the Insurance Ombudsman Rules 2017 stipulates that:

A complaint shall be decided within 90 days of the receipt of all the requirements from the complainant.

Although this provision speaks in terms of documents from the complainant, timely cooperation by the insurer is indispensable to meeting the 90-day disposal target. If insurers delay SCNs or ancillary documents, the Ombudsman’s ability to conclude matters within the statutory time frame is compromised.

IRDAI’s circular therefore seeks to align insurer conduct with the spirit and object of Rule 17(4) by indicating specific deadlines for insurer-side submissions.

Core Directions Issued by IRDAI

To improve the efficiency and timeliness of the Ombudsman system, IRDAI has laid down clear operational instructions for insurers.