What is the maximum claim processing timeline prescribed by Insurance Regulatory Development Authority of India (IRDAI)?

A death claim under a Life Insurance policy shall be paid or be rejected or repudiated giving all the relevant reasons, within 30 days from the date of receipt of all relevant papers and required clarifications. However, where the circumstances of a claim warrant an investigation in the opinion of the insurer, it shall initiate the same at the earliest and complete such investigation expeditiously, in any case not later than 90 days from the date of receipt of claim intimation and the claim shall be settled within 30 days thereafter.

How will the policy claims be settled for NRI policyholder?

Upon submission of all necessary documents, the claim settlement shall be as given below:

a) In case the premium is paid in foreign currency, the claim settlement can be allowed in foreign currency in the same proportion to the premium paid in foreign currency and balance claim amount, if any, will be settled by crediting NRO account of the claimant, as applicable.

b) Claims/maturity proceeds/ surrender value in respect of life insurance policies issued to NRIs for which premium have been collected in non-repatriable rupees may be paid only in rupees by credit to NRO account of the claimant. This would also apply in cases of death claims being settled in favour of resident outside India assignees/ nominees.

c) Claims/maturity proceeds/ surrender value in respect of policies issued to foreign nationals not permanently resident in India may be paid in rupees or may be allowed to be remitted abroad, if the claimant so desires.

If premium payments are made in non-repatriable Indian rupees, the payouts by the insurer are allowed only in India rupees credited to the NRO account of the beneficiary. This is also applicable in situations where death claims are settled in favor of non-resident nominees/assignees.

The beneficiary is required to submit the bank statement highlighting the transactions for premiums paid towards the policy through the NRE account.


The above claim settlements shall be at times be subject to RBI regulations and applicable laws.