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ANNUAL REPORT 2011-12
II.6.15 Service Tax (Cenvat Credit) Rules amendment
introduced in 2011 relating to Motor Authorized Repair
Centers had the unintended impact on the disallowance
of Cenvat input credit to insurers on the Motor OD
claims paid to Authorized Repair Centers. This and
other service tax related issues were taken up on
priority with IRDA, Ministry of Finance and were
highlighted by the Council to Chairman, Central Board
of Excise and Customs (CBEC) during the pre-budget
meeting. These efforts of the CFOs and the Council
have been successful and the Service tax amendment
in 2012 has rectifi ed this for insurance companies.
These amendments have also clarifi ed the ambiguity
as regards to Cenvat credit in respect of reinsurance
premium paid to GIC Re.
II.6.16 Insurance Information Bureau (IIB)
The Council officials ensured that in every meeting
of the underwriters / claims offi cials, the status of data
upload to IIB is discussed. The Council is striving to
ensure that the data formats for transfer of data to IIB
is uniform and that the time lag gets reduced. Stress
on quality and timely submission of data were
repeatedly made.
The IIB Officials confirmed that the status and the
quality of data submission have improved a lot. Data
upload in respect of the two major retail businesses -
Health and Motor classes have stabilized upto a large
extent. The Property class has also witnessed good
improvement during the year.
II.7 FUNCTIONING OF OMBUDSMEN
II.7.1 During 2011-12, the twelve Ombudsmen centres
spread across India received 22,340 complaints. While
12,353 complaints (55 per cent) pertained to life
insurers, the remaining 9,987 (45 per cent) related to
non-life insurers. This was in addition to 6,021
complaints which were pending with various offi ces of
Ombudsmen as at the end of March, 2011. As such
the offi ces of Ombudsmen handled a total of 28,361
cases during 2011-12. During the year, the Ombudsmen
disposed of 21,185 complaints. Of these complaints,
Ombudsmen declared 68 per cent as Non-Acceptable
/ Not-Entertainable. Awards / Recommendations were
issued for seventeen per cent of the total complaints.
Other than this, eight per cent of the complaints were
withdrawn, while another seven per cent of the
complaints were dismissed.
II.7.2 At the end of March 2012, 7,176 cases were still
pending with Ombudsmen for adjudication.
TABLE II.13
DISPOSAL OF COMPLAINTS BY OMBUDSMEN DURING 2011-12
Insurer
Complaints
outstanding
as on
31.3.2011
Complaints
received
during
2011-12
Total Complaints
disposed
during
2011-12
No. of complaints disposed
by way of
(I) (II) (III) (IV)
Complaints
outstanding
as on
31.03.2012
Life 2343 12353 14696 11850 1422 775 612 9041 2846
(12.01) (6.54) (5.16) (76.29)
Non-life 3678 9987 13665 9335 2083 870 913 5469 4330
(22.31) (9.32) (9.78) (58.59)
Combined 6021 22340 28361 21185 3505 1645 1525 14510 7176
(16.55) (7.77) (7.20) (68.48)
Notes:
(I) Recommendations / Awards
(III) Dismissal
(II) Withdrawal / Settlement
(IV) Non-acceptance / Not-entertainable
Figures in brackets indicate percentages to the respective complaints disposed.
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