The correct answer is D.
The Ombudsman is a statutory authority appointed by the Central Government under the powers of the Insurance Act 38 and under Redressal of Public Grievance Rules 1998. The Ombudsman is an independent authority and is not bound by the decisions of the insurer or the insured. The Ombudsman can act as a mediator by mutual agreement between the insurer and the insured. However, the decision of the Ombudsman is not final and can be challenged in a court of law.
Option A is correct. The Ombudsman is appointed by the Central Government under the powers of the Insurance Act 38 and under Redressal of Public Grievance Rules 1998.
Option B is incorrect. The recommendations of the Ombudsman are not always binding on the insured. The insured can challenge the decision of the Ombudsman in a court of law.
Option C is correct. The Ombudsman can act as a mediator by mutual agreement between the insurer and the insured.
Option D is incorrect. The decision of the Ombudsman is not final and can be challenged in a court of law.