Life insurance claim delayed — how long can the insurer take to pay?

Written for policyholders in India · Last reviewed 2026-10-10

Under IRDAI's 2024 master circular, a death claim should be settled within 15 days of intimation, or within 45 days if it needs investigation; a surrender within 7 days of the request; and maturity, survival and annuity payments on the due date. If the insurer misses these, it owes interest at the bank rate plus 2% from the date it received the intimation, and should pay it without being asked.

A delay is easier to act on than a rejection, because the rule is a date. Work out which timeline applies, count from the right day, and then put the delay to the insurer in writing.

Which clock applies

Settlement timelines for life insurance claims (IRDAI master circular, September 2024)^[1]
Claim	Timeline	Counted from
Death claim, no investigation	Within 15 days	The date of intimation
Death claim needing investigation	Within 45 days, investigation included	The date of intimation
Surrender or partial withdrawal	Within 7 days	Receipt of the request
Maturity, survival benefit, annuity or income benefit	On the due date	The due date in the policy

If a letter, web page or article gives a settlement period taken from the IRDAI (Protection of Policyholders' Interests) Regulations, 2017, note that those regulations were repealed when the 2024 Regulations came into force. Check any timeline you are given against the current master circular.^[2]

Interest for the delay

If a claim is not settled within these timelines, the claimant is entitled to interest at the bank rate plus 2% from the date the intimation was received until payment, and the insurer must pay it on its own along with the claim. The bank rate is the Reserve Bank of India's rate on the first day of the financial year in which the claim fell due. Ask the insurer to show the rate and the dates it used rather than working out a figure yourself.^{[1, 2]}

How to put the delay to the insurer

Fix your start date.
Find the date the insurer received your intimation or surrender request: an email, a portal acknowledgement, a branch receipt. The timelines run from that date.^[1]
Find out what is actually outstanding.
If the insurer says it is waiting for papers, ask for the complete list in writing. Insurers must ask for all the documents they need at one go, and a claim cannot be rejected or closed for want of documents.^{[3, 1]}
Write to the grievance officer.
Name the claim, the date of intimation, the timeline that applies and the date it passed, and ask for payment with interest. The insurer should resolve the complaint within 14 days.^[1]
Escalate if needed.
Delay in settling a claim beyond the time the regulations allow is one of the grounds the Insurance Ombudsman can hear, once your written complaint has been rejected, not answered within one month, or answered unsatisfactorily. You can also register the complaint on IRDAI's Bima Bharosa portal.^{[4, 5]}

Maturity and survival benefits

These are due on the due date itself, not some days after it. Keep your bank and contact details up to date with the insurer: IRDAI's circular notes that missing contact or bank details delay settlement and leave amounts unclaimed. If money has been pending a long time, see how to trace unclaimed money.^[1]

Check with the official source

LIC labels these timelines 'working days' in its own policy document, while IRDAI's circular says days. The circular also says it is reviewed every year, so check the current version on irdai.gov.in before relying on a figure.^{[6, 1]}

Sources

The official documents this page relies on. Rules change: where it matters to your claim, check the current version at the source.

1. IRDAI (scanned copy of the circular, hosted by caalley.com)
Master Circular on Protection of Policyholders' Interests, 2024 – Ref IRDAI/PP&GR/CIR/MISC/117/9/2024 dated 5 September 2024 (full scanned text with IRDAI letterhead; OCR text layer)
Dated 2024-09-05 · Accessed 2026-10-09 · Cited at: IRDAI Master Circular on Protection of Policyholders' Interests (IRDAI/PP&GR/CIR/MISC/117/9/2024, 5 Sep 2024), Section 1, Part A (Life), V.2 table row 1, printed page 15; IRDAI Master Circular on Protection of Policyholders' Interests (IRDAI/PP&GR/CIR/MISC/117/9/2024, 5 Sep 2024), Section 1, Part A (Life), V.2 table row 2, printed page 15; IRDAI Master Circular on Protection of Policyholders' Interests (IRDAI/PP&GR/CIR/MISC/117/9/2024, 5 Sep 2024), Section 1, Part A (Life), V.2 table rows 3 and 4, printed page 15; IRDAI Master Circular on Protection of Policyholders' Interests (IRDAI/PP&GR/CIR/MISC/117/9/2024, 5 Sep 2024), Section 1, Part A (Life), V.2 para 2, printed page 15; IRDAI Master Circular on Protection of Policyholders' Interests (IRDAI/PP&GR/CIR/MISC/117/9/2024, 5 Sep 2024), Section 1, Part A (Life), V.1(ii), printed page 15; IRDAI Master Circular on Protection of Policyholders' Interests (IRDAI/PP&GR/CIR/MISC/117/9/2024, 5 Sep 2024), Section 1, Part A (Life), VI.2(i), printed page 19; IRDAI Master Circular on Protection of Policyholders' Interests (IRDAI/PP&GR/CIR/MISC/117/9/2024, 5 Sep 2024), Section 1, Part A (Life), VII 'Miscellaneous provisions', para 2(i), printed page 20; IRDAI Master Circular on Protection of Policyholders' Interests (IRDAI/PP&GR/CIR/MISC/117/9/2024, 5 Sep 2024), cover letter, para 3, printed page 3
Read from a copy hosted at caalley.com · Official page
2. IRDAI / Gazette of India (copy hosted by Department of Financial Services)
IRDAI (Protection of Policyholders' Interests, Operations and Allied Matters of Insurers) Regulations, 2024 - F. No. IRDAI/Reg/11/205/2024; Gazette of India Extraordinary Part III Sec 4, No. 208, 22 March 2024
Accessed 2026-10-09 · Cited at: IRDAI (Protection of Policyholders' Interests, Operations and Allied Matters of Insurers) Regulations, 2024, regulation 58(1)(g) 'Repeal and Savings'; IRDAI (Protection of Policyholders' Interests, Operations and Allied Matters of Insurers) Regulations, 2024, regulation 5(3)
3. Gazette of India (Extraordinary, Part III Sec 4), hosted by Department of Financial Services, Ministry of Finance
IRDAI (Protection of Policyholders' Interests, Operations and Allied Matters of Insurers) Regulations, 2024, F. No. IRDAI/Reg/11/205/2024, Hyderabad, 20 March 2024
Accessed 2026-10-09 · Cited at: IRDAI (Protection of Policyholders' Interests, Operations and Allied Matters of Insurers) Regulations, 2024, regulation 23(4)
4. Council for Insurance Ombudsmen (hosting the Ministry of Finance rules)
The Insurance Ombudsman Rules, 2017 [updated as on 9.11.2023] - consolidated copy
Dated 2023-11-09 · Accessed 2026-10-09 · Cited at: Insurance Ombudsman Rules, 2017 (consolidated as amended to 9 Nov 2023), Rule 13(1)(a)-(b); Insurance Ombudsman Rules, 2017 (consolidated as amended to 9 Nov 2023), Rule 14(3)(a)(i)-(iii)
5. IRDAI (copy hosted by CAalley.com because irdai.gov.in was unreachable)
Master Circular on Protection of Policyholders' Interests, 2024 - IRDAI/PP&GR/CIR/MISC/117/9/2024 dated 5 September 2024
Dated 2024-09-05 · Accessed 2026-10-09 · Cited at: IRDAI Master Circular on Protection of Policyholders' Interests (IRDAI/PP&GR/CIR/MISC/117/9/2024, 5 Sep 2024), Section 1, Parts A/B/C, VI 'Complaints Mechanism', 1(ii)
Read from a copy hosted at caalley.com · Official page
6. Life Insurance Corporation of India (LIC)
Policy for Protection of Interests of Policyholders 2024 (Annexure IV) – LIC board policy document
Accessed 2026-10-09 · Cited at: LIC Policy for Protection of Interests of Policyholders 2024, Section 5 'Service Parameters', b) 'Policy Servicing Bench Marks' table header and item 5 'Death Claims', page 9

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