Insurers will have to pay penal interest to the insured person in case they do not settle claims within 30 days from the date of receipt of the last necessary document for settlement. In the case of delay in the payment of a claim, the company shall be liable to pay interest from the date of receipt of last necessary document to the date of payment of claim.
The insurer will pay at 2 per cent above the bank rate, the Insurance Regulatory and Development Authority of India (Irdai) said. Bank rate is the rate at which the Reserve Bank of India lends money to commercial banks without …
Source: Business Standard
