In exercise of the powers conferred by section 24 of the Insurance Regulatory and Development Authority Act

## Report on the Insurance Ombudsman Second Amendment Rules, 2021 **1. Executive Summary:** This report analyzes the Insurance Ombudsman Second Amendment Rules, 2021, as published in the Gazette of India on May 18, 2021. This amendment modifies the Insurance Ombudsman Rules, 2017, specifically addressing the scenario of a vacancy in the office of the Chairperson of the Insurance Regulatory and Development Authority (IRDA). The key change designates the seniormost wholetime member of the Authority to authorize actions in the absence of a Chairperson. This report details the specific amendment, its potential implications, and target stakeholders based solely on the provided policy text. **2. Introduction:** This report aims to provide a concise and informative analysis of the Insurance Ombudsman Second Amendment Rules, 2021, based exclusively on the official gazette notification provided. The analysis focuses on understanding the amendment's objective, key changes, and potential impact. **3. Policy Overview:** * **Amendment to:** Insurance Ombudsman Rules, 2017. * **Core Objective(s):** Based on the provided text, the primary objective is to ensure continuity and authorization capabilities within the Insurance Regulatory and Development Authority (IRDA) in the event of a vacancy in the Chairperson's office. **4. Background and Rationale:** This amendment appears designed to address a potential operational gap within the IRDA's governance structure. Without this amendment, a vacancy in the Chairperson's office might create uncertainty regarding who is authorized to make decisions or authorize actions. The amendment proactively designates the seniormost wholetime member of the Authority to fill this authorization gap, ensuring uninterrupted functionality and decision-making. **5. Key Provisions / Changes:** This amendment modifies Rule 7 of the Insurance Ombudsman Rules, 2017, specifically subrule 2, clause a. * **Original Rule Part:** "may authorise" * **New Rule Part:** "...may authorise, and in case there is a vacancy in the office of the Chairperson of the Authority, the seniormost wholetime member of the Authority shall be inserted." * **Difference/Effect of the Change:** The amendment explicitly empowers the seniormost wholetime member of the IRDA to authorize actions normally undertaken by the Chairperson when that position is vacant. This change ensures that the IRDA maintains its operational capacity and decision-making authority even in the absence of a permanent Chairperson. **6. Target Audience and Stakeholders:** The primary target audience and stakeholders include: * The Insurance Regulatory and Development Authority (IRDA) and its members. * The Insurance Ombudsman and related staff. * Insurance companies regulated by the IRDA. * Policyholders who utilize the Insurance Ombudsman mechanism for dispute resolution. **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** The Insurance Regulatory and Development Authority (IRDA) is the primary body responsible for implementing this amendment. * **Timelines/Procedures:** The amendment came into force from the date of its publication in the Official Gazette (May 18, 2021). The procedures for determining the "seniormost wholetime member" are not specified in this text but would likely be governed by existing IRDA internal regulations. * **Specific Implementation related to Changes:** The IRDA must internally define and communicate the process by which the seniormost whole-time member assumes authorization powers during a Chairperson vacancy. **8. Expected Outcomes / Impact of Changes:** The likely intended outcome of this amendment is to: * Maintain operational efficiency and continuity within the IRDA during a vacancy in the Chairperson's position. * Ensure timely decision-making and authorization of actions related to insurance regulation and dispute resolution. * Provide clarity and avoid ambiguity regarding the delegation of authority in the absence of the Chairperson. This benefits the regulated insurance companies and ultimately the policyholders relying on the Ombudsman system. **9. Conclusion:** The Insurance Ombudsman Second Amendment Rules, 2021, represent a targeted adjustment to the existing regulatory framework. By clearly defining the authorization pathway in the event of a Chairperson vacancy, the amendment promotes operational stability and continuity within the IRDA. This ensures that the regulatory body can effectively fulfill its mandate without interruption, thereby maintaining confidence and stability within the insurance sector.

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