The insurance regulatory authority directed not to reject a claim on the grounds of delay in June 2017. Later, the Supreme Court also gave its directions. A person’s truck was stolen in 2010. The person could not trace the truck and after 8 days went for the claim. But, the insurance company rejected his claim stating that the claim is applicable only if the info about theft is given immediately to the company.
It is not right to reject for being late: Supreme
· The issue went to Supreme Court. The apex court gave the judgment in favor of the truck owner saying that it is not right to reject only on the grounds of delay.
· It also commented that it is not correct to reject genuine claims for silly reasons. However, it also suggested policy holders not to delay claims showing this as a reason.
To be paid with interest
· After investigating the case, it was agreed that the claims manager has to pay the truck owner 7.85 lakhs.
· However, the Supreme Court ordered to pay the sum with interest of 8% from the date of claim totaling 8.35 lakhs.
What is the definition of delay?
· The judgment came as a welcome relief for the truck owner, but delaying claims can result in several problems and experts suggest not to do so.
· But what is the definition of delay here and why do insurance company show less interest to pay in delayed claims and how does the insurance regulatory authority look at this issue, here are answers.
Issues with delays
· Generally, most insurance companies stipulate time limit for claim but the problem here is that the agents don’t inform the customers about this at purchase clearly.
· It is the right of the customer to know about this when buying the policy.
· The insurance companies look at delayed claims with fraudulent outlook. It was proven that such claims are often cheats and that is the reason they have a deadline for claim.
· The insurance company can complete the investigation of claim faster if the claim is placed as early as possible.
· There is an opinion that if there is no deadline, customers will not take up the responsibility of claim.
What is the right deadline?
When the question about the right deadline arises, motor insurance has about 7 days of time. each company has its own set of rules in this regard and it is the responsibility of the policy holder to know this while buying a policy.