IRDA displeased with PSU insurers in settlement of claims
13 December 2002
Chennai: Irked by the non-compliance of its Insurance Regulatory and Development Authority (Protection of Policyholders Interests) Regulations, 2002, by government insurers (both life and non-life), the Insurance Regulatory and Development Authority (IRDA) has sent a communication to all the insurers to strictly follow the norms stated in its regulations.
The said regulations, apart from other aspects, have provided for payment of interest at 2 per cent over the bank rate by the insurers on the claim amount if the settlement is delayed.
In its communication to the CEOs of all the insurers, IRDA has informed that the regulations come into immediate effect upon its publication in the official gazette, and the operating offices of insurance companies should follow the same without waiting for instructions from their head offices.
According to IRDA, even if an insurer does not expressly reject a claim but sit over it, then the claimant should be paid interest for the delayed settlement.