New Delhi, July 25 -- We buy insurance to protect our finances against unforeseen life events such as hospitalisation or a death in the family. However, it's a reality that insurers reject claims. Policyholders have the option to escalate the issue to the insurance ombudsman or approach consumer courts, which can be both expensive and long-drawn.

To ensure faster resolution, the Insurance Regulatory and Development Authority of India (IRDAI) has proposed that insurers appoint an internal ombudsman who will look into complaints that have not been addressed within 30 days.

Industry stakeholders have until 17 August to send their comments and suggestions on the proposal to the regulator.

"The objective of the insurance company's in-house ...