Speedy, cost-free justice for policyholders

Insurance ombudsman deals with complaints of maladministration by companies

ISLAMABAD:

This institution – the Federal Insurance Ombudsman – was established in 2006 under the Insurance Ordinance 2000 as an independent and autonomous organisation.

It was further empowered by the Federal Ombudsman Institutional Reforms Act 2013. The core objective of the institution is to provide speedy and free-of-cost justice to the aggrieved policyholders of the insurance sector and it has helped greatly to relieve the burden of cases on the overburdened judicial system.

It is further said that the institution of Federal Insurance Ombudsman is gaining popularity amongst the clientele concerned because it is an absolutely informal, speedy, hassle-free and cost-free forum for providing justice.

The institution deals with complaints due to maladministration by insurance companies in Pakistan.

Dr Muhammad Khawar Jameel took over the charge of Federal Insurance Ombudsman as the fourth ombudsman on December 12, 2019. After taking over, he aimed to focus on three major aspects that required the earnest and immediate decisions.

First, there should be an improved public perception of this important institution. Second, a systemic and enhanced public access with institutional expansion of this institution will be ensured to facilitate the stakeholders and third, parties will be facilitated for an amicable settlement by way of mediation, failing which findings will be communicated to the insurance company concerned with necessary directives.

The Federal Insurance Ombudsman with encouragement acted upon the legislation in its true spirit, resulting in a large number of complaints having been resolved and settled amicably immediately after taking cognisance of the same.

Insurance companies in Pakistan have been repudiating the claims for different reasons, but they have now transformed themselves into client-friendly firms in order to resolve the matters amicably.

Awareness drive

The success of any public-oriented facilitating step depends on the awareness given to the public at large. The Federal Insurance Ombudsman laid particular emphasis in the recent past on the public information campaign.

Mass communication, including the print and electronic media, was thus exhaustively employed for a targeted information campaign to apprise the general public of the working and mandate of this office.

The institution is trying its level best to provide justice to the affected/ aggrieved people at their doorsteps by operating from Karachi, Islamabad, Lahore, Peshawar and Multan and by also holding public hearings through video link.

The aggrieved people can now approach the Federal Insurance Ombudsman Secretariat and its regional offices online.

The public information campaign to guide and advise the aggrieved people is a continuing refrain and these measures have now started showing positive results as more and more people are now lodging their complaints with this forum.

The insurance industry in Pakistan is being regulated under the Insurance Ordinance 2000. It gives special importance and stresses the need for regulating the business of insurance industry to ensure the protection of the interest of insurance policyholders and to promote sound development of the insurance industry and for matters connected herewith and incidental thereto.

Rule of law

The basic principle of law is that it should govern. It primarily refers to the influence and authority of the law-abiding society, particularly as a constraint to behaviour, especially that of all of its stakeholders.

The quintessence of any law making should be the inbuilt mechanism of accountability that leads towards rule of law.

Keeping the same in view, the Insurance Ordinance 2000 has a separate chapter relating to the establishment and existence of the office of Federal Insurance Ombudsman as an essential part of inbuilt ability to judiciously regulate the insurance industry and to ensure the protection of stakeholders with justice without delay.

The focal point of achievements of the recent past is the reflection of the motto, “Developing a modern and sound oversight mechanism to take cognisance of maladministration prevalent in the insurance industry of Pakistan”.

This institution is striving towards monetary relief, which fuels the realisation of the hope of aggrieved clients, the policyholders, who find themselves in a dilemma because of maladministration by their respective insurers.

Most of the policyholders, who got relief from the ombudsman, have expressed their acknowledgment and appreciation of this state institution through formal letters and it further lends credence, strength and credibility to the institution and provides a solid foundation for its further expansion and strengthening.

The writer is the Director General, Federal Insurance Ombudsman Secretariat

Published in The Express Tribune, July 13^th, 2020.

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