Insurance ombudsman offices in India can now handle policyholder complaints involving compensation claims up to Rs 50 lakh, increased from the previous limit of Rs 30 lakh. This amendment, effective from November 10, addresses the growing trend of high-value term insurance policies.
Policyholders dissatisfied with claim rejections can escalate matters to ombudsman offices for faster resolution, with the order being binding on insurance companies.
The increase in the limit is viewed positively, ensuring quicker resolution of high-value death claims and avoiding lengthy consumer court processes.