We, the investors, have a very powerful tool called the ombudsman, at our disposal to raise complaints against services offered to us to make sure any wrongdoing is investigated and possibly corrected.
It’s called the ombudsman. I am sure each one of us has come across this term sometime or the other.
Let’s take a look at who is an ombudsman in India, what the ombudsman term means and how it can help you.
So, who is an ombudsman?
An ombudsman is an authority, appointed by the government and even private bodies to investigate complaints against an authority. Essentially, the ombudsman is an intermediate person who tries to resolve the complaints which one party has raised against the other. Their task is to look into the complaint and resolve the matter in a peaceful manner. Generally, it is meant to be used by a service consumer.
In other words, the ombudsman is supposed to provide quick, neutral and cost effective justice to an aggrieved complainant. He tries to bring the issue of the consumer/complainant to the service provider’s notice so that it can be resolved.
In India, ombudsman exists for sectors like insurance, income tax, banking and other sectors as well. So you can approach the Insurance Ombudsman for your insurance related complaints; the Banking Ombudsman for banking related complaints and the Income Tax Ombudsman for income tax related complaints.
What steps do I need to follow to register a complaint ?
Here are the steps you might want to follow if you are an aggrieved customer.
Step 1: The first wise thing to do is to raise a complaint with the party concerned (bank or insurance company for example) in writing. Make sure you have a proof of the fact that you raised the complaint with all the details.
Step 2 : If the party rejects your complaint or does not reply within a stipulated time, then raise a complaint with the ombudsman. Make sure you supply all the documentation and proof to the ombudsman for them to assess your case.
Step 3 : Within a stipulated time of the complaint, the ombudsman tries to resolve the dispute.
Step 4 : If the resolution is acceptable to you, you will need to accept within 15 days. The party against whom the complaint was lodged has to inform the ombudsman within a month of the verdict about how it has complied with the judgment. If the party agrees with the verdict, it actions it.
Step 5 : If the resolution is not acceptable to you, you can approach the courts.
Points to note
Please keep in mind the following points when you raise a complaint with the ombudsman.
You can never go to the ombudsman directly without first having raised the issue with the concerned party/service provider. For example, if you have a grievance against an insurance company, you will first need to raise it with them before you knock on the doors of the insurance ombudsman.
Remember, you will need to raise the complaint within a year of having received the reply from the concerned party.
A complain can be made in ordinary writing. However, there is a form which is available as well. Another thing to note is that you can simply email your grievance also to the ombudsman.
Ombudsman keep their ruling simple and short – do not expect rolls of paper reaching your doorstep awarding you compensation.
An often missed consumer-friendly point to note is that the verdicts are binding on insurance companies, banks and the tax department but not on the complainant. Over and above this, if an individual is not satisfied with the verdict handed out by the ombudsman, he is free to approach other redressal forums.
It has often been alleged that the ombudsman often is a representative of the service provider and sides with the provider. The banking ombudsman is appointed by the Reserve Bank of India and is usually a chief general manager or general manager of the RBI. The insurance ombudsman is named by the Governing Body of the Insurance Council (GBIC) which was set up to appoint and supervise the insurance ombudsman. The taxation ombudsman is appointed by the Centre on the recommendations of an expert committee.
So do expect a fair trail.
Is an ombudsman helpful to consumers ?
Having used it personally against insurance companies, I am sure it is of great significance and help. It is shocking to see that most service providers have very incompetent help desk, phone and email support. You can hardly make any progress for an amicable resolution with them.
This is where the ombudsman comes into the picture and can help out. Since they have enough powers vested in them to pass awards and verdicts, they are a huge relief as the consumer is given an opportunity to resolve the matter in a time and cost effective manner. If the complainant has to approach the courts, the going will be very tough on time and monetary fronts.
Have you ever approached any ombudsman ? Was it effective ?
Update: New provisions got included on 23 June 2017. Details Here.
WealthWisher (TW2) has always kept investors interest above all, as I feel – Country can survive without Mutual Funds or PPF but it cannot survive without Investors. Product-taker rights should be protected first.
In other words: We Hate Mis-selling. Hence we have written a lot on the protection of investor interest and providing them help to resolve disputes:
If you have a grievance you may read/follow these links:
Real Estate/Property: Link
Income Tax: Link
NBFCs/Fraudulent companies: Link
RBI-Link to Ombudsman: Link
Addresses of RBI Ombudsman: Link
Hi Radhey,
Thanks a lot..Very informative article.I have heard for the first time about ombudsman.
Are there any relevant sites for insurance , bank and tax ombudsman to lodge a complaint online?
Where are they physically available if we want to personally explain the problem and submit the complaint?
Regards,
RaviShankarKota
@RaviShankarKota, I wanted to cover these in future articles on how to deal with bank, insurance and tax ombudsman. Watch out for them.
@TheWealthWisher,
Sure..Thanks !
Sir/Madam,
The corrupt recovery agent Mr Bala Subramanyam,contact no: 9959392514 who swallowed five thousand rupees bribe again and again blackmails me while demanding entire payments at a time while charging extra eighty thousand rupees more to clear off the Traders Easy Loan. The Asst Manager Mr Yesaiah is behind the screen , even after payment of one and half lack rupees from my side within this a month .The CBI is also reported in this regards. The RBI Ombudsman Hyderabad is contacted to reschedule the payments . Kindly intervene and do justice. There is no other option except commit suicide, since harassment for bribe is unbearable.
K. Ramakrishna A/c No : 10558508583
Srinidhi Standard Sofa works
Proddatur
Mobile : 919491421108
the contents in the above 3 pages are very much useful not only for the banking customers but also for adovocates
I just visited 9 ATM’s in my area for different Banks – HDFC / Fedral Bank / South Indian Bank / Indian Overseas Bank / Canara Bank / ICICI etc, but for my surprise most of them had this message “Out of Service / Out of Cash”
Now this causes a major difficulty for commom public. Can OMBUDSMAN do anything about this?
Manish Gupta
Why not, first take it up with the bank and they should respond. Customer complaints are always helpful.
@Manish,
9 ATM’s out of service/out of cash at the same time, wow that’s strange.
Which location?
I am working in a company at the moment who has 2 months notice period which I have to serve or else can get an early release in lieu of 2 months salary but that depends upon the process head approval . Now I have got a good oppurtunity in another company with a good package and with a process which I was searching from many months .Even when I have served the notice period for more than 30 days still the management is not allowing me to leave and the other company where I have got the chance they are not ready to wait for so long as they have got a batch of trainees who are starting from 13th March,2013. The management in the current company knows about my movement and even in past I have contacted all other people in the organisation to get the help but no body has helped neither they have tried to move in another work location where I can get a good package , they just have an excuse that by the time that job reaches to my manager that gets filled so that means that there is a communication gap . They are just trying to ruin my career even when they know that they cannot provide me a good job with a good package . After some months I will be married so I will have additional responsibilities which my current company knows but simply because of their requirement they are depriving me of getting a good oppurtunity.
Hi Radhey,
Would like to know if I can lodge a complaint to Ombudsman, with the issues I’m facing with my credit card company as well?
Thanks,
Jovita
Subject- REGARDING FINAL CPF WITHDRAWN OF SELF HAVING CPF A/C NO.-69380.
Respected Sir,
I beg to state that I had work in “Food Corporation of India” since 21.7.1984 to 23.5.1988 as a junior engineer(civil) at R.M. Office Bhubaneswar (Orissa).FCI had deducted CPF from my monthly salaries during this period.But,FCI had not refunding my CPF amount till date.I had applied for withdrawn my CPF in prescribed forms to FCI,Bhubaneswar on dated 06.12.2013,i.e.,before more than 1 year.FCI,Bhubaneswar forwarded my final CPF withdrawn application on dated 29.3.2014(letter no.-Estt.39/P-II/Final CPF/2013) to the Asst. General Manager(CPF) KOLKATA & FCI Bhubaneswar forwarded my Idemnity Bond on dated 29.01.2015[letter no.-Esst./39/P-II Genl.(Misc.)Corresp/2013] to the Executive Director (Zone),Kolkata.I had applied 4 times to the Executive Director (Zone) Kolkata regarding this matter on dated 09.04.2015,11.05.2015,15.06.2015 & 21.07.2015.But,the Executive Director (Zone) Kolkata had not give any reply from his end till date.
I had applied 2times to the Chairman, FCI, New Dilhi regarding this matter on dated 24.08.2015 & 28.09.2015.But,the Chairman, FCI, New Dilhi had not give any reply from his end till date.
My last service place was R.M.Office,FCI,Bhubaneswar(Orissa) under Zonal Office,FCI,KOLKATA(W.B.).
I am a old man of 56 years.I am suffering from illness.I am not doing any service at present.
Kindly,take necessary action for refunding my CPF from your end.
Thanking you,
Yours Faithfully,
ARUP KUMAR BARAT
Subject : Education Loan queries
Hi,
I applied education loan in the financial year 2008-2009. Currently, I’m paying the education loan on monthly basis. I brought the amount of Rs. 1,46,000 as education loan. I paid 52k till now but still Rs. 1,36,000 need to pay.
I got a news that no interest for education loan but in my bank(SBH – Puducherry) they told that till 2014 only no interest for your education loan. From 2015 January onwards, we will collect each month interest for it.
Please clarify my doubt. I need to know interest is free for education loan or not.
Dear Anita,
The interest is waived only for a limited period and for the balance period the loanee pays the interest. The bank is correct, and you can get clarification by asking them their education policy in written.
I’ve recently relocated from the UK to India. I transferred funds (via ICICI Bank) worth INR 3.5 crores of which INR 2.5 crores have been disputed by my UK Bank for various reasons. This is to do with a business setup in India. The balance funds are my personal funds. On 1st of March my ICICI local branch informed me that my account has been debit frozen, but did not provide me a reason. It took them 15 days to respond to my why and on the 16th of March they provided me with a letter from my UK Bank stating that GBP 260,000 is disputed, since then I have written to the branch manager and the senior managements and also Ms Chanda Kochar the CEO for unfreezing my personal monies. They have not given me a proper response at all and have been pushing aside my queries completely!! Is it now time to write to the Ombudsman and get a solution to this problem?? Can I expect justice to be done ?
Dear Sonya,
Without any doubt… you should proceed to RBI ombudsman. All RBI regional offices have ombudsman cell. approach your nearest one and fill the case with all the relevant documents and past correspondence with the bank. In your case since you didn’t mention why the UK Bank has disputed your money transfer, kindly collect all relevant information before approaching ombudsman.
I am a doctor in Safdarjang hospital, Delhi. I went to our hospital branch bank of baroda. Manager was depositing money from two doctors in his room showing he is helping doctors but when I asked for being a female Doctor Professor, he simply refused to deposit money & misbehaved & said you have to deposit in the main counters with long queue. when I asked him why he is accepting from other doctor he replied I will do whatever I want to do. In the mean time one senior citizen also entered his room with whom he also misbehaved .Then after me also I heard he again started accepting money from others in his room. Can ombusman help me in this regard?
Dear Dr Durga,
So sad you faced such ordeal. Yes, these come under ombudsman, but banks have a procedure to lodge a complaint against their service. First is to fill the grievance form and deposited at the regional office (http://www.bankofbaroda.com/regionredress.asp) near you. In case their is no satisfactory resolution, forward complaint to Zonal Office (http://www.bankofbaroda.com/zonalredress.asp). If still unsatisfied contact this address:
General Manager, Operations & Services
Bank of Baroda, Head Office, Suraj Plaza – 1 6th Floor;
Sayajigunj, Maganwadi, Baroda-390 005, (Gujarat) India
Tel. : (0265) 2363001 – 2361852 (PBX) Fax : (0265) 2362914
e-mail : gm.ops.ho@bankofbaroda.com
+919845353089
I had signed guarantor for my nephew education loan in 2007. but He did not repay any amount till the date. The bank also did not give any notice till the date he and me. the C.Govt announced that No guarantor required for Education loan. accordingly, I regularly transact with the concerned bank. in this situation, I took a gold loan for Rs. 72000/- before one year. While I repaid the full amount to take back my jeweles, the bank manager refused to give back my jewels due to the outstanding in Education loan of your nephew. he said after clearing the loan, you can take back the jewels. so far the bank has not served any notice both us. is the manager catching (my jewels) activity correct or wrong? can I approach to Ombudsman in this regard? pl. help me. I am very depressed by this jewel catching activities.
Hi the current rules allow bank to lien on another asset/account balance in case previous due are not paid. They are right in that way. But they must adhere to the process and inform with proper documentation. I don’t think Ombudsman will of much help here.