NEW DELHI, May 26 -- Claims disputes are a familiar part of the insurance industry. Policyholders routinely approach the insurance ombudsman seeking relief after insurers reject claims they believe are genuine. But navigating the process is rarely easy. Complainants must fill lengthy forms, compile extensive documentation and wait for hearings where they are expected to argue their case against large insurance companies with far greater legal and technical expertise.

The imbalance becomes sharper because many policyholders struggle to interpret insurance policy terms in the first place. Many are unaware the ombudsman mechanism even exists, let alone equipped to argue complex disputes in a legally sound manner.

Yet under the current fram...