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`Insurance claims must be settled within 7 days`
Insurance Regulatory And Development Authority (IRDA) said on Friday general insurance claims must be settled within seven days, beyond which the insurance companies would have to pay annual rate of interest of 10 per cent on the claim amount.
Insurance Regulatory And Development Authority (IRDA) said on Friday general insurance claims must be settled within seven days, beyond which the insurance companies would have to pay annual rate of interest of 10 per cent on the claim amount.
We are working on regulations for insurance companies to improve their working and their better response towards customers. The draft is likely to be ready soon," N Rangachary, Chairman, IRDA said at the workshop on Insurance organised by PHD Chamber of Commerce and Industry (PHDCCI).
It is unfortunate that four public sector companies which conduct large part of business, have not shown any improvement in quality of their services, he said. "They need to be realigned to meet market expectations. They are anaemic to the requests of the customers. Settlement of claims take long time. They must recognise the rights of the policy holders," Rangachary said.
There are 10 players in the general insurance business including four GIC subsidiaries and a plethora of new products are being offered to the customers, he said, adding that some of the private companies were settling claims within 24 hours or within 72 hours. Rangachary, however, said that rural insurance and medical insurance were still the areas which need to be emphasised.
Breau Report
We are working on regulations for insurance companies to improve their working and their better response towards customers. The draft is likely to be ready soon," N Rangachary, Chairman, IRDA said at the workshop on Insurance organised by PHD Chamber of Commerce and Industry (PHDCCI).
It is unfortunate that four public sector companies which conduct large part of business, have not shown any improvement in quality of their services, he said. "They need to be realigned to meet market expectations. They are anaemic to the requests of the customers. Settlement of claims take long time. They must recognise the rights of the policy holders," Rangachary said.
There are 10 players in the general insurance business including four GIC subsidiaries and a plethora of new products are being offered to the customers, he said, adding that some of the private companies were settling claims within 24 hours or within 72 hours. Rangachary, however, said that rural insurance and medical insurance were still the areas which need to be emphasised.
Breau Report