IBAI appeals to Dr. Tapan Singhel, Chairman, GI Council, for joint action on market conduct, broker viability, and consumer trust

Mumbai, October 14Th

The Insurance Brokers Association of India (IBAI) representing over 750 licensed insurance brokers across the country, met with Dr. Tapan Singhel, Chairman, GI Council today and submitted a detailed representation highlighting critical issues affecting transparency, market conduct, and policyholder welfare in the general insurance sector. IBAI reiterated its commitment to work collaboratively with the GI Council, Government, and regulators to strengthen customer trust, improve distribution efficiency, and ensure sustainable market growth.

IBAI’s representation includes key recommendations aimed at building a more transparent and equitable insurance ecosystem. It has requested that an IBAI nominee be included as a special invitee in GI Council meetings discussing distribution and policyholder issues, the adoption of a standard and fair arbitration clause across all policy types, and the formation of a joint working group to operationalize an Alternative Dispute Resolution (ADR) framework for faster, pre-litigation settlements.

The association has also raised immediate concerns over market conduct, urging the GI Council to advise insurers to honour existing commission arrangements, avoid discouraging the servicing of retail health policies, and consult intermediaries before altering remuneration terms. IBAI further called for an industry-wide dialogue on the transfer of GST burden to intermediaries to maintain viability and compliance, along with standardized and time-bound co-insurance brokerage settlement guidelines to streamline operations and cashflows.

To enhance transparency and consumer protection, IBAI has proposed quarterly product-level disclosure of claim settlement ratios, loss ratios, and turnaround times on insurer websites. It has also recommended appointing a Grievance Redressal Officer for commercial claims within each insurer and urged senior leadership to expedite long-pending and high-ticket claim resolutions.

Commenting on the representation, Mr. Narendra Kumar Bharindwal, President, IBAI, said, “IBAI’s goal is to create a fair, transparent, and stronger insurance ecosystem where everyone, like the policyholders, brokers, and insurers can benefit together. When all stakeholders work in harmony and decisions are made through open dialogue, it leads to better outcomes for customers and builds lasting trust in the system. We believe that with the GI Council’s guidance and collaborative efforts across the industry, we can address key challenges, protect customer interests, and drive long-term, sustainable growth for the insurance sector.”

During the meeting, the Chairman of the GI Council, Dr. Tapan Singhel, emphasised the importance of stronger coordination and constructive dialogue among all industry bodies and stakeholders to advance the interests of policyholders and promote responsible growth of the general insurance sector. He encouraged continued collaboration between the GI Council and IBAI on issues related to market conduct, transparency, and customer trust.

IBAI reaffirmed its commitment to working closely with the Council and taking a lead role in championing policyholder-related initiatives and promoting fair market practices across the sector. The Chairman also acknowledged IBAI’s recent representation to the Hon’ble Finance Minister on including insurance-related initiatives under CSR, noting that such efforts help unify the industry around a shared purpose of financial inclusion and societal well-being.

IBAI emphasized that these measures will help strengthen customer confidence, ensure fair practices across stakeholders, and foster long-term sectoral resilience.