IRDA asks insurers not to reject claims mechanically.

Wednesday 21, September, 2011 In a big relief to policyholders, the regulator IRDA on Wednesday 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. "Rejection of claims on purely technical grounds in a mechanical fashion will result in policy holders losing confidence in the insurance industry, giving rise to excessive litigation," the regulator said in a communication to life and non-life insurance companies.

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