The National Law Commission of India in its consultation paper on Insurance Act 1938, which recommended that the new Act should provide for a full-fledged grievance redressal mechanism for the safe guarding the interest of policy holders has also recommended that the practice of having an Insurance Ombudsman at major metropolises be scrapped.
In its place will be constituted Grievance Redressal Authorities (GRA) constituted by appropriate amendments to the Insurance Act, 1938 itself. These would thus be statutory authorities exercising statutory functions.
The GRAs could be multi-member bodies comprising one judicial member and two technical members. The Commission has also said that a certain degree of transparency should be induced in the process of selection of such members.
These Authorities according to the Law Commission should be dispersed as geographically widely as possible.
