The Insurance Regulatory and Development Authority of India (Irdai) has notified new rules to protect policyholder’s interest. You can read the full notification here. While the regulations work towards ensuring that insurers settle all kinds of claims on time by defining the penalty on delays, there is much left to be desired in addressing better disclosures for the customers. We take you through some key provisions of the notification and also bring you experts’ views on what more could have been included in it.
Penalty on late payments
If an insurer delays claims payments, it has to pay a penalty that’s 2% over the bank rate, which is specified by the Reserve Bank of India, as on 1 April of that fiscal.
