Beyond Complaint Resolution: The Evolution Of The Insurance Grievance Redressal Framework

Introduction

Grievance redressal has long formed part of the Indian insurance regulatory framework. R2(4) of the IRDAI (Protection of Policyholders’ Interests, Operations and Allied Matters of Insurers) Regulations 2024 (“2024 PPHI Regulations”) expressly identifies “policyholder-centric governance by insurers and distribution channels, with emphasis on grievance redressal” as one of the objectives of the framework. Insurance Companies and distribution channels have therefore, for several years, been subject to requirements governing the handling and resolution of grievances.

While the insurance regulatory framework was considerably revised in 2024, the revised framework did not introduce grievance redressal as a new regulatory requirement. What has changed, however, is the manner in which these requirements are articulated. The new framework sets out more specific requirements around the channels through which grievances may be lodged, acknowledgement and resolution timelines,