The position of Insurance Ombudsman was created by a Government of India Notification in November 1998. The main function of this Ombudsman is to quickly dispose the grievances of insured customers and lessen the problems involved in redressing complaints. This institution is vital and relevant to protect the interests of policyholders and also shape their belief in the system. The existence of an Insurance Ombudsman has helped generate and sustain faith and confidence amongst both consumers and insurers alike.
Ombudsmen are chosen from various fields such as the Civil Services, Insurance Industry and Judicial Services. They are appointed for a term of three years or till they turn sixty-five years of age. Currently there are twelve Insurance Ombudsmen appointed in different parts of the country. They all have defined jurisdictions.