Mumbai: Private insurer HDFC Life, which has been penalised by the regulator Irda for delayed settlements, today said it clears all claims on time unless there is a non-disclosure of material facts and that in all such cases it pays penal interest to the affected party.
"HDFC Life has a philosophy of paying all claims (on time) unless and until there is a non-disclosure of material fact or a fraud against the company (claimant). We have a practice of investigating such claims, which involve additional information," the company Chief Executive Officer, Amitabh Chaudhary, said in a statement here.
"However, HDFC Life pays penal interest for compensating policyholders as specified in the regulations, wherever these delays take place," he stated.
The delay in investigation in cases, which were part of the showcause notice by Irda, was due to non-cooperation of the claimants, hospitals or other public authorities to provide the requisite information or evidence, he said.
Earlier in the week, the regulator had imposed a penalty of Rs 5 lakh on HDFC Life for delaying settlement of claims and has asked the insurer to streamline its processes.
The watchgod had also directed the insurer "to put in place (within 15 days) effective claim settlement procedures and take all such measures that deem fit for both pro-active and timely settlement of all types of claims."
The order was issued on a complaint filed with the Insurance Regulatory and Development Authority (Irda) in April 2009 for delay in settlement of death claims by HDFC Life.