Which of the following statements is incorrect?

A. Ombudsman is appointed by the Central Government under powers of the Insurance Act 38 and under Redressal of Public Grievance Rules 1998

B. The recommendations of the Ombudsman are always binding on the insured

C. The Ombudsman can act as a mediator by mutual agreement between the insurer and the insured

D. If mediated, the decision of the Ombudsman is final whether to accept or reject the complaint

Answer: Option B

Solution(By Examveda Team)

The recommendations of the Ombudsman are not binding on the insured. Hence, option (2) is the incorrect statement.