TaxTMI 
TaxTMI 
Insurance Ombudsman (Amendment) Rules, 2021
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....onferred by section 24 of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999), the Central Government hereby makes the following rules further to amend the Insurance Ombudsman Rules, 2017 (hereinafter referred to as the said rules), namely:- 1. (1) These rules may be called the Insurance Ombudsman (Amendment) Rules, 2021. (2) They shall come into force from the date of their publication in the Official Gazette. 2. In the Insurance Ombudsman Rules, 2017,- (i) for the letters "IRDAI" wherever they occur, the word "Authority" shall be substituted; (ii) for the words "Executive Council of Insurers" wherever they occur, the word "Council for Insurance Ombudsmen" shall be substituted. 3. In rule 4 of the said rules, in sub-rule (1),- (i) for clause (d), the following clause shall be substituted, namely:- '(d) "Council for Insurance Ombudsmen" means the Council for Insurance Ombudsmen constituted under rule 5;' (ii) in clause (e), for the word "established", the word "appointed" shall be substituted; (iii) clause (f) shall be omitted; (iv) after clause (k), the following cla....
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....Ombudsmen shall invite applications by advertisement for selection of Insurance Ombudsman and such advertisement shall be issued in respect of each vacancy existing in the office of the Insurance Ombudsman at the beginning of a calendar year including any vacancy likely to arise in that calendar year. 7A. Qualification for appointment of Insurance Ombudsman.-A person shall not be qualified for appointment as Insurance Ombudsman, unless he- (i) is not less than fifty-five years but not exceeding sixty-five years of age as on the last date specified for receipt of application in the advertisement; (ii) is, or has been, a member of an all-India service or a civil service of the Union and has held a post of Joint Secretary or equivalent to the Government of India; or (iii) has served for at least twenty-five years in the insurance industry and has held a post not less than one level below that of a director of a board. 7B. Procedure and selection criteria for appointment of Insurance Ombudsman.-(1) The Council for Insurance Ombudsmen shall shortlist up to five candidates from each category of applicants specified in clauses (ii) and (iii) of....
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....s holding, subsidiary or associate company; (vii) disclosure regarding the candidate or his relatives holding shares in excess of two per cent. in, or being a material supplier, service provider or customer of, or being a lessor or lessee of, an insurer. (3) The Council for Insurance Ombudsmen shall convey to the Authority, the particulars under sub-rule (2) for its opinion as to the applicant's suitability, integrity and absence of conflict of interest, keeping in view the information conveyed and such other information as it may consider relevant. (4) After considering the opinion of the Authority under sub-rule (3), the particulars of the candidates referred to in sub-rule (2) shall be laid before the selection committee which shall take into account the suitability of the candidates including as to absence of conflict of interest and finalise the process of shortlisting of candidates for interaction. (5) In respect of candidates figuring in the shortlist finalised by the selection committee under sub-rule (4) who are public servants or officials falling within the scope of the powers and functions of the Central Vigilance Commission establish....
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....urance Ombudsman shall hold office for a term of three years or till he attains the age of sixty-eight years, whichever is earlier, and shall not be eligible for reappointment: Provided that every Insurance Ombudsman holding office as such as on the 2nd day of March, 2021, may continue to hold office for the term specified at the time of his appointment or till he attains the age of seventy years, whichever is earlier.". 7. In rule 9 of the said rules, after the words "gross misconduct during the term of office,", the words "or physical incapacity, or unsoundness of mind, or insolvency, or conviction for an offence involving moral turpitude, or engagement in any other paid employment, or conflict of interest or furnishing as part of the selection process information that is false or omits to specify material facts," shall be inserted. 8. In rule 11 of the said rules, after sub-rule (3), the following sub-rule shall be inserted, namely:- "(4) Notwithstanding anything contained in sub-rules (1) and (2), where there is a vacancy in an office of Insurance Ombudsman having territorial jurisdiction as specified by the Council for Insurance Ombudsmen under sub-rule....