[Insurance Ombudsman Rules] Rule 17 Empowers Ombudsman To Grant Compensation But Gives No Power To Issue Directions Upon Insurer: Kerala HC

In a recent ruling, the Kerala High Court clarified the powers of the Insurance Ombudsman under Rule 17 of the Insurance Ombudsman Rules, 2017. The court held that while the Ombudsman has authority to examine complaints and make recommendations, they lack the power to issue binding directions to insurers. \r

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The judgment emphasized that Rule 17 does not confer quasi-judicial powers upon the Ombudsman, limiting their role to making non-binding recommendations. This decision underscores the need for clear statutory authority in dispute resolution mechanisms within the insurance sector, highlighting the distinct roles of regulatory bodies versus judicial authorities in resolving insurance disputes.