The Ministry of Finance (MoF) on December 16, 2025, notified regarding the Regulatory Framework for Motor Insurance Claim Settlement.
The following has been stated namely: -
• It states that the Insurance Regulatory and Development Authority of India (IRDAI) has strengthened the regulatory framework for motor insurance claim settlements, mandating insurers to adopt board-approved, transparent, and time-bound claim policies to protect policyholders.
• Under the IRDAI (Protection of Policyholders’ Interests) Regulations, 2024, insurers shall disclose the roles and duties of surveyors/loss assessors and ensure that all claim deductions and settlements are reasonable and documented.
• This framework aims to reduce arbitrary or coercive practices in motor claim settlement and improve customer trust.
• Data shows that motor insurance complaints as a share of total complaints fell from 26.18% in FY 2023-24 to 24.8% in FY 2024-25, reflecting progress in consumer grievance handling.
[Press release id: 2204758]
