InvestorQ : What are the new guidelines by IRDAI to insurers for settling claims?
simran Kaur made post

What are the new guidelines by IRDAI to insurers for settling claims?

Answer
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nishi Shah answered.
3 months ago


IRDAI has directed the insurance companies to either settle or reject claims, as the case may be, within a specified period of 30 days from the date of receipt of the last necessary document. In cases where the insurance companies do not settle claims in time, they are liable to pay interest to the policyholder form the date on which last necessary document was received to the date of payment of claim at a rate of 2% above the rate of bank prevailing during that period.

Guidelines also stated that if one wants to change their insurer or port their insurance policy from one service provider to another, they can do so at least 45 days before the date of renewal of policy date but not later than 60 days. However, in case of any misrepresentation, misdescription or non-disclosure of any material fact by the policyholder, the said policy shall become void and all the premiums paid by the insured shall be forfeited.