Your insurer is sitting on the claim. It is working against a clock.
Claim settlement is governed by fixed IRDAI timelines, and a missed deadline carries interest the insurer must pay on its own. Here's the timeline that applies to your claim — and how to use it to force a decision.
Reviewed by the BimaHaq Insurance Grievance Desk — BimaHaq's in-house insurance-grievance team — specialists in IRDAI grievance redressal, the Insurance Ombudsman process, and policyholder rights in India. · Last reviewed 2026-10-26
Insurers do not have unlimited time. Under the 2024 IRDAI rules a life death claim must be settled within 15 days of intimation (45 days if it needs investigation) and a health reimbursement claim within 15 days of submission. For a motor or property claim the insurer must decide the claim “within seven days of receipt of the survey report or after expiry of fifteen days from allocation of the claim to the surveyor whichever is earlier” — IRDAI's General Insurance Master Circular states it simply as seven days from the survey report, and the timeline does not apply to a property policy on a reinstatement-value basis. Miss the timeline and the insurer must pay you interest at the bank rate plus 2%, from the date it received intimation until it pays, and the circular says it must pay this suo-moto — on its own initiative. Delay is also a stand-alone ground of complaint to the Insurance Ombudsman.
Why insurers reject on this ground
Claims stall when an insurer keeps asking for more documents, sits on a surveyor's report, routes a file through endless internal review, or simply misses its settlement deadline without explanation.
When you can challenge it
Every stage of a claim runs against a regulated clock. For general insurance a surveyor must be allocated within 24 hours of the claim being reported, must file the report within 15 days (₹500 per day is payable to you if the surveyor delays), and the insurer must then decide within 7 days of the report. For health, a cashless authorisation must be decided within one hour and a discharge authorisation within three hours — and if the insurer misses the three-hour discharge window, any extra amount the hospital charges is on the insurer, not you. Across life, health, and general insurance, a claim not settled in time carries interest at bank rate plus 2%, which the insurer must pay suo-moto, on its own initiative, and a claim cannot be rejected or closed merely for want of documents or delayed intimation. If it stays stuck, delay in settlement is expressly a ground before the Insurance Ombudsman, whose award binds the insurer within 30 days — with a further ₹5,000 per day payable to you if the insurer does not honour it.
How to fight this rejection
- 1
Fix the timeline that applies to your claim
Identify your claim type and its deadline: 15 days (or 45 with investigation) for a life death claim, 15 days for a health reimbursement claim, or, for motor/property, a decision within 7 days of the survey report. Note the date you gave intimation and submitted documents — the clock runs from there.
- 2
Put the deadline and your interest entitlement in writing
Send the insurer's Grievance Redressal Officer a dated note stating the applicable timeline, that it has lapsed, and that you are entitled to interest at bank rate plus 2% from intimation until payment — which the insurer must add on its own. Ask for the surveyor's report if one applies.
- 3
Escalate delay as its own ground
If the grievance does not resolve it, take the delay to the Insurance Ombudsman — delay in settlement is a stand-alone ground of complaint, separate from any dispute over the merits. Registering it on IRDAI's Bima Bharosa portal as well is optional.
- 4
Raise a written grievance with the insurer's GRO
Send a dated grievance to the insurer's Grievance Redressal Officer setting out why the rejection is wrong. The insurer must acknowledge it immediately and resolve it within 14 days.
- 5
Optionally, complain to IRDAI on Bima Bharosa
If it isn't resolved in time or the reply is unsatisfactory, you can also register the complaint on IRDAI's Bima Bharosa portal. It is optional: the Insurance Ombudsman does not require it.
- 6
Take it to the Insurance Ombudsman
Free, and the award binds the insurer. The Ombudsman can award up to ₹50 lakh — a cap on the award rather than the claim. File within one year of receiving the insurer's rejection — or, if it never replied, within one year of one month after you sent your representation.
Common questions
How long can an insurer take to settle a claim?
Under IRDAI's 2024 Master Circular on Protection of Policyholders' Interests, a life death claim must be settled within 15 days of intimation (45 days if investigation is warranted) and a health reimbursement claim within 15 days of submission. For a motor or property claim the insurer must decide the claim “within seven days of receipt of the survey report or after expiry of fifteen days from allocation of the claim to the surveyor whichever is earlier” — the General Insurance Master Circular states it simply as seven days from the survey report — and that timeline does not apply to a property policy on a reinstatement-value basis.
What happens if the insurer is late?
It owes you interest at the bank rate plus 2%, calculated from the date it received intimation of the claim until the date it pays, and the circular says it must add this interest on its own (suo-moto). If it does not, ask for it in writing.
Can a claim be rejected because I was late or a document was missing?
No. The 2024 Master Circular expressly prohibits rejecting or closing a claim merely for want of documents or for delayed intimation; for health claims the insurer and TPA must themselves collect the required documents from the hospital.
My hospital discharge is being held up by the insurer. What are my rights?
For a cashless health claim the insurer must grant discharge authorisation within three hours of the hospital's request, and you must not be made to wait to be discharged. If it misses that window, any additional amount the hospital charges for the delay is borne by the insurer, not you.
Is delay itself a ground to complain to the Ombudsman?
Yes. Rule 13(1)(a) of the Insurance Ombudsman Rules 2017 makes 'delay in settlement of claims' beyond the regulatory timelines an express, stand-alone ground. The Ombudsman is free, its award binds the insurer within 30 days, and a further penalty is payable to you if the insurer does not honour it.
What BimaHaq costs, if you want help with this:
Fixed fees, never a share of your claim. No outcome is guaranteed. See all prices
This guide is general information about the insurance-grievance process in India, not legal advice, and figures (timelines, monetary limits, jurisdiction) can change — verify against the official sources linked above before you rely on them.