New Delhi: To ensure prompt settlement of claims, IRDA has asked Life Insurance Corporation of India (LIC) to complete all claims-related investigations within the stipulated time-frame of six months.
"The Authority advises the LIC to expeditiously complete all the claim investigations within the stipulated time frame and also put in place effective systems to settle the claims promptly," the IRDA said.
The Insurance Regulatory and Development Authority (IRDA) said that while examining the documents submitted by LIC it found there were 300 cases as on March 2010 where investigations were pending beyond six months.
"Despite huge number of death claims being handled by LIC, there is still scope for LIC to improve the claim settlement performance and adhere to provisions of regulations," IRDA said.
The IRDA Regulations warrant an insurance company to complete investigation within of death claims in 6 months from the date of lodging of claims. Further, a life insurer has to pay or dispute the claim giving reasons for the same within 30 days of receipt of all relevant papers.
In September, IRDA had asked insurance companies not to mechanically reject claims on technical grounds, like delay in filing claim documents.
IRDA has issued these directives following complaints that claims are being rejected on grounds of delay in intimation and submission of documents to insurers.