IRDAI's master circular says insurers pay ₹5,000 a day if they don't comply with an Ombudsman award within 30 days. Is there an actual procedure to enforce it, and has it ever been paid?
1 Answers
What I asked IRDAI, and what they said
RTI IRDAI/R/E/26/01354, reply dated 09.09.2026
Q. Give me the procedure for computing, demanding, paying and monitoring this penalty. If none exists, say so.
A. "No subsequent update by Authority."
So there is nothing beyond the circular itself.
Q. Who is responsible for ensuring the penalty is actually paid? Name the officer or division.
A. Refused. Said it is an "opinion" and not information under Section 2(f).
Q. How many times did this penalty become payable in FY 2024-25 and FY 2025-26? In how many cases was it actually paid?
A. "Comprehensive data not available."
Q. Does a complainant have to demand it, or does the insurer pay it on its own?
A. Refused as "opinion".
So: a penalty exists on paper. No procedure to enforce it. No data on whether it has ever been paid. Nobody named as responsible.
The quarterly returns
The same circular, clause 26.4, says insurers must file a quarterly statement with IRDAI on the status of court cases.
Q. Does IRDAI scrutinise these statements to check for unpaid Ombudsman awards?
A. Yes - but for the insurer I asked about, "not scrutinised for the above period."
The returns were filed on time. They were not examined.
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