Close ILTakeCare Suggestion
IL TakeCare app – For all your insurance & wellness needs

Policy purchase, claims, renewal & more

 

The IRDAI Wants Insurers to Speed up Claims Process

The IRDAI wants insurance companies to find a sound mechanism to deal with genuine delays in intimation of claims, without compromising on bad claims.

  • 30 Jun 2017
  • 2 min read
  • 261 views

The Insurance Regulatory and Development Authority of India (IRDAI) had on 29th September 2011 issued an order on how to deal with delayed intimation of claims and delayed submission of documents by claimants.

They had issued a circular informing insurance companies that they had been receiving many complaints of claims being rejected because of a delay in intimation and submission of documents. They asked insurers to not deny claims on mere technical grounds, particularly if the delay was due to an unavoidable circumstance.

The circular stated that, “The current contractual obligation imposing the condition that claims shall be intimated to the insurer with prescribed document within a specified time period is necessary for insurers for effecting various post claim activities like investigation, loss assessment, provisioning and claim settlement. However, this condition should not prevent settlement of various claims, particularly when the delay in intimation or submission of documents is due to unavoidable circumstances.”

The IRDAI further asked insurers to reject insurance claims only on the basis of sound logic or for extremely valid reasons. Insurers are to find a sound mechanism to deal with claims that are submitted after the specified time period.

“The insurers should treat such claims on ‘merit’ and ‘good spirit’ of the clause, with ‘utmost care’ and ‘caution’, without compromising on bad claims.” IRDAI said.

“Rejection of claims merely on technical grounds and mechanical fashion will result in policy holders losing confidence in the insurance industry, giving rise to excessive litigation.” it added.

Also read:

  • Looking for tailored advice?

    Schedule a call with our insurance advisors

  • OR
  • Call us:

    1800 2666
Please enter valid name
Please enter a valid mobile number
Please select the Category

Subscribe to our newsletter

Understand insurance better by reading our helpful guides, articles, blogs and other information.

Please enter valid name
Please enter valid Email

Error message here