Ministry Notification

6. Ombudsman -
A. The governing body shall appoint one or more persons as ombudsman for the purpose of these rules.

B. The Ombudsman selected may be drawn from a wider circle including those who have experience or have been exposed to the industry, civil service, administrative service, etc. in addition to those drawn from judicial service.

C. An Ombudsman shall be appointed by the Governing Body from a panel prepared by the Committee consisting of -
(i) Chairman of Insurance Regulatory Authority - Chairman.
(ii) Two representatives of Insurance Council including one from the Life Insurance Business and another from the General Insurance Business - Member.
(iii) One representative of the Central Government - Member.

7. Term of Office - An Ombudsman shall be appointed for a term of three years and shall be eligible for re-appointment. Provided that no person shall hold office as Ombudsman after he has attained the age of 65 years. (According to the amendment Dt. 21.6.99, provision of reappointment has been cancelled).

8. Removal from Office -
(i) An Ombudsman may be removed from service for gross misconduct committed by him during his term of office.
(ii) The Governing Body may appoint such person as it thinks fit to conduct enquiry in relation to misconduct of the Ombudsman.
(iii) All enquiries on misconduct will be sent to Insurance Regulatory Authority which may take a decision as to the proposed action to be taken against the Ombudsman.
(iv) On recommendations of the Insurance Regulatory Authority if the Governing Body is of opinion that the Ombudsman is guilty of misconduct, it may terminate his services.