The Insurance Regulatory and Development Authority of India (IRDAI) now requires insurance companies to settle claims within 30 days [1].

These regulations aim to strengthen policyholder rights by preventing companies from indefinitely delaying payments. By establishing clear deadlines, the regulator seeks to ensure that consumers receive their funds in a timely manner during critical periods of need.

Under the mandate, general claims must be resolved within 30 days [1]. For more complex cases, the regulator has set specific windows for investigations to prevent administrative stalling. Investigations for health claims should conclude within 30 to 45 days [1].

Life insurance policies are subject to a different timeline due to the nature of the claims. The IRDAI said that investigations for life policies must be completed within 90 days [1].

Companies that fail to meet these deadlines will face consequences. The regulator said that failure to meet these timelines results in interest penalties [1]. These penalties are designed to discourage insurers from delaying the payout process through unnecessary bureaucracy.

Policyholders who experience delays can now cite these specific timeframes when filing grievances with their providers or the regulator. The move shifts the burden of proof to the insurance companies to justify any delays beyond the mandated windows.

“Insurance companies must resolve claims within 30 days.”

The IRDAI's enforcement of strict settlement windows transforms the power dynamic between Indian insurers and policyholders. By quantifying the maximum allowable time for investigations and payouts, the regulator is reducing the ability of firms to use 'pending investigation' as a tool for liquidity management or claim avoidance.