annual report 2008-09 - IRDA

Committee, supported by their working parties. The
day-to-day business and affairs of the IAIS are taken
care of by its Secretariat, located at the Bank for
International Settlements in Basel, Switzerland.
The IAIS develops principles, standards and guidance
for effective insurance supervisory regimes. In doing
so it helps to establish and maintain fair and efficient
insurance markets for the benefit and protection of
policyholders. The IAIS also prepares ‘issue papers’
that provide background on specific areas of interest
to insurance supervisors.
The IAIS collaborates closely with other international
financial institutions and international associations of
supervisors or regulators and assists in shaping
financial systems globally. In particular, the IAIS is
one of the constituting bodies of the Joint Forum and
participates in all of its working groups. It is also
represented on the Financial Stability Forum. The
IAIS provides input to the International Accounting
Standards Board (IASB) for its work on the
international financial reporting standards most
relevant to insurers, and is a member of the IASB’s
Standards Advisory Council as well as an official
observer of its Insurance Working Group and Financial
Instruments Working Group. It also has observer
status on the Financial Action Task Force, which
combats money laundering and terrorist financing.
The Authority is represented by its Chairman on its
Executive Committee and by Members on the various
Committees of IAIS looking into insurance contracts,
accounting aspects, insurance laws, reinsurance,
financial conglomerates, solvency, frauds, etc.
(v) Public grievances
The Grievance Cell of IRDA receives complaints from
policyholders, insurance intermediaries and from other
sources against different insurance companies. On
receipt of the complaints the cell functions in two ways:
ANNUAL REPORT 2008-09
(a)
(b)
Facilitates —- early resolution of the complaint
by the insurer through direct interaction with the
policyholder and
Analyses the complaints based on:
(i) duration of disposal
(ii) functional area
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:
(a)
The weakness in market practices
(b) 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.
Life Insurers
TABLE 52
STATUS OF GRIEVANCES — LIFE INSURERS
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
Insurer Outstanding Grievances Total No of Resolved Outstanding
as on Reported complaints during as on
31.3.2008 during 2008-09 as on 31.03.09 2008-09* 31.3.2009
LIC 685 481 1166 980 186
Private 332 1313 1645 1373 272
Total 1017 1794 2811 2353 458
Note: * includes those resolved from outstanding as on 31.3.2008.
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