Insurance Regulator IRDAI Directs Insurers to Settle Death Claims Within 15 Days
The Insurance Regulatory and Development Authority of India (IRDAI) has issued new directives to insurance companies to expedite the settlement of death claims. Insurers are now required to settle these claims within 15 days, a significant reduction from the previous 30-day timeline. This move aims to provide faster relief to beneficiaries of life insurance policies.
IRDAI's new guidelines stipulate those uncomplicated cases, which do not require additional verification, must be resolved within this 15-day period. However, for claims needing further investigation, the settlement time is extended to 45 days. This adjustment is intended to streamline processes and ensure quicker disbursement of claims to policyholders' families.
Additionally, insurance companies are now mandated to address any complaints related to the claims within 14 days. This includes resolving issues concerning non-payment or delays in settlements. These reforms are part of IRDAI's ongoing efforts to enhance customer service and maintain transparency in the insurance sector.
Other Key Changes Include:
- All pending claims must be settled promptly, with clear communication to policyholders.
- Insurance companies must process grievances within a fixed 14-day period.
- Specific timelines have been set for different types of claims, such as policy surrender, survival benefits, and maturity payouts, ensuring a consistent approach across all insurers.
These changes are expected to improve the efficiency of claim settlements and provide much-needed support to beneficiaries during difficult times, reinforcing trust in the insurance system.
