A motor claim that has gone quiet feels like a rejection in slow motion. Weeks pass, the workshop is holding your car, and every call ends with “it’s under process.” Here is what most policyholders never realise: a delayed claim is not a dead claim, and the delay is not free for the insurer. IRDAI puts hard deadlines on every stage of a motor claim, and once those deadlines pass, the insurer owes you interest automatically — whether or not you ask for it.
This guide lays out the exact IRDAI clock for a motor claim, the money the insurer owes you for crossing it, the one trick insurers use to keep resetting that clock, and the step-by-step escalation ladder that actually gets a stuck claim moving.
The IRDAI clock: what should happen, and by when
The current rulebook is the IRDAI Master Circular on Protection of Policyholders’ Interests, 2024, read with the IRDAI (Protection of Policyholders’ Interests, Operations and Allied Matters of Insurers) Regulations, 2024. For a surveyed motor claim (any own-damage loss of ₹50,000 or more must be surveyed by a registered surveyor), it sets a stage-by-stage timeline:
| Stage | IRDAI deadline | What it means for you |
|---|---|---|
| Surveyor allocated | Within 24 hours of you reporting the claim | A registered surveyor must be assigned almost immediately, not weeks later. |
| Survey report submitted | Within 15 days of allocation | If the surveyor drags beyond 15 days, the insurer must pay you ₹500 for every extra day. |
| Insurer decides the claim | Within 7 days of receiving the report (or 15 days from allocation, whichever is earlier) | Approve or repudiate — the insurer cannot sit on the report indefinitely. |
| Payment delayed? | Interest runs from intimation to payment | The insurer owes bank rate + 2% interest, paid on its own. |
| Grievance response | Within 30 days of your written complaint | Silence past 30 days is itself a ground to escalate. |
Add up the surveyed path and a straightforward motor claim should be decided in roughly three weeks from reporting. That is the yardstick to measure your insurer against.
Where the “30 days” figure actually comes from
You will see “insurers must settle within 30 days” quoted everywhere, and it causes real confusion. There is no single 30-day rule that covers a motor claim end to end. The 30 days is really two separate outer limits:
- Settlement window: once every necessary document is in, a claim that needs no investigation is expected to be settled within about 30 days. For a surveyed motor claim the tighter 24-hour / 15-day / 7-day chain above is what binds.
- Grievance window: your insurer must respond to a formal written complaint within 30 days. This is the clock that opens the door to the Ombudsman.
So if someone tells you “they still have 30 days,” ask which 30 days — because for a surveyed claim, the surveyor and decision deadlines usually expire well before that.
The money a delay costs the insurer (not you)
This is the part insurers rarely volunteer. Under the 2024 Master Circular, if a claim is not settled within the specified timelines, the claimant is “entitled for interest at bank rate plus 2 percent from the date of receipt of intimation till the date of payment,” and that interest must be paid by the insurer suo-moto — on its own initiative, added to the claim amount. You are not supposed to have to fight for it.
As of mid-2026 the RBI Bank Rate is 5.50%, so penal interest runs at 7.50% per annum. (Always check the current RBI Bank Rate for your period — it moves with monetary policy.)
The “one more document” trick — and how to close it
The single most common way a claim is stalled is the rolling document request: the insurer asks for a document, waits, then asks for another, resetting the practical clock each time. The 2024 circular deliberately blunts this. It states that all documents needed to accept the risk must be called for at underwriting, that “no claim shall be rejected for want of documents,” and that you need submit only documents directly related to the claim (claim form, driving licence, permit, fitness, FIR, repair bills where cashless is not available, and the like).
To shut the trick down, send one email listing every document you have submitted, with dates, and ask the insurer to confirm in writing that the file is complete or to specify — in a single consolidated list — any document still outstanding and the exact clause requiring it. Once you have that confirmation, the “date of receipt of last necessary document” is fixed, and the interest clock starts running against them.
Your escalation ladder, step by step
Delay is a form of deficiency in service. Work the ladder in order and keep proof at every rung.
| Step | Where | What to do |
|---|---|---|
| 1. Written grievance | Insurer’s Grievance Redressal Officer (GRO) | A dated, properly drafted complaint citing the specific timeline breached and demanding settlement plus suo-moto interest. The insurer must respond within 30 days. |
| 2. IRDAI Bima Bharosa | bimabharosa.irdai.gov.in (the IGMS grievance portal) | If the GRO is unhelpful or silent, register the complaint with the regulator. This creates a tracked token the insurer must address. |
| 3. Insurance Ombudsman | Free, quasi-judicial, up to ₹50 lakh | After 30 days of insurer silence or an unsatisfactory reply, file with the Insurance Ombudsman for your region. Delay and non-settlement are squarely within its remit. |
| 4. Consumer Commission | District / State / National, under the Consumer Protection Act, 2019 | For claims above ₹50 lakh or where you want compensation for harassment. Commissions routinely order the claim paid with interest and additional compensation for mental agony and litigation cost. |
Most delayed motor claims are resolved at step 1 or 3 once the insurer sees that you know the exact rule being broken.
What not to do while your claim is delayed
Two mistakes quietly cost policyholders the most. First, do not sign a “full and final” discharge voucher for a reduced figure just to end the wait — signing under protest, or not at all, preserves your right to the balance and the interest. Second, do not let a repudiation slip past on a technicality: under the 2024 rules an insurer cannot repudiate a claim merely because of your delay in intimation where that delay did not increase the assessed loss. Delay by you is not an automatic defence for them, and delay by them is not something you must simply absorb.
Myth versus reality
| What you are told | What the rules actually say |
|---|---|
| “The claim is under process, please wait.” | “Process” has deadlines: 24h to allocate a surveyor, 15 days for the report, 7 days to decide. |
| “We have 30 days, so there is no delay yet.” | The surveyed-claim deadlines usually expire before 30 days; the 30-day figure is the outer settlement/grievance limit. |
| “Interest is only if a court orders it.” | Bank rate + 2% is payable suo-moto by the insurer once timelines lapse — no court needed. |
| “You must keep sending documents.” | A claim cannot be rejected for want of documents, and only claim-related documents can be demanded. |
The bottom line
A delayed motor claim is one of the few disputes where the rules are firmly on the policyholder’s side. IRDAI has put a clock on every stage, attached automatic interest to a missed settlement, and built a free escalation path to the Ombudsman. The moment you stop asking “any update?” and start writing “this specific deadline has lapsed and I am owed interest,” a stalled claim tends to move. Document everything, pin down the date your file was complete, and work the ladder in order.
Frequently asked questions
Not sure whether your claim is actually late? See the full IRDAI motor claim timeline — surveyor in 24 hours, report in 15 days, settlement in 7 days — to check exactly which deadline has been missed.
What is the IRDAI time limit to settle a motor insurance claim?
For a surveyed motor claim, IRDAI’s 2024 Master Circular requires the surveyor to be allocated within 24 hours of reporting, the survey report to be submitted within 15 days of allocation, and the insurer to decide the claim within 7 days of receiving that report (or within 15 days of allocation, whichever is earlier). A straightforward claim should therefore be decided in about three weeks.
Does my insurer have to pay interest if my motor claim is delayed?
Yes. Under the IRDAI Master Circular on Protection of Policyholders’ Interests, 2024, if a claim is not settled within the specified timelines, the insurer must pay interest at bank rate plus 2% from the date of intimation to the date of payment — and it must be paid suo-moto (on the insurer’s own initiative), added to the claim amount.
How much interest is payable on a delayed insurance claim in India?
The rate is the RBI Bank Rate plus 2% per annum. As of mid-2026 the Bank Rate is 5.50%, so penal interest runs at about 7.50% per year. On a ₹3,00,000 claim paid 90 days late, that is roughly ₹5,548 in interest. Always confirm the current Bank Rate for your claim period.
What is the ’30-day rule’ for insurance claims?
There is no single 30-day rule covering a motor claim end to end. The 30 days refers to two outer limits: the window to settle a claim once all documents are in (for claims needing no investigation), and the window within which your insurer must respond to a written grievance. For a surveyed motor claim, the 24-hour, 15-day and 7-day deadlines usually expire before 30 days.
What can I do if the surveyor is delaying the survey report?
The surveyor must submit the report within 15 days of allocation. If they exceed that, IRDAI requires ₹500 per day of delay to be paid to you, the claimant. Put the delay in writing to the insurer, since it is the insurer’s duty to obtain the report within the time limit.
Where do I complain about a delayed motor insurance claim?
Work the ladder in order: first a written grievance to the insurer’s Grievance Redressal Officer (30-day response clock); then IRDAI’s Bima Bharosa (IGMS) portal; then the Insurance Ombudsman (free, for claims up to ₹50 lakh); and finally the Consumer Commission under the Consumer Protection Act, 2019, for larger claims or compensation for harassment.
Can an insurer keep asking for more documents to delay my claim?
No. The 2024 circular states that no claim shall be rejected for want of documents and that only documents directly related to the claim may be demanded. Ask the insurer to confirm in writing that your file is complete, or to list every outstanding document at once — this fixes the date of the last necessary document and starts the interest clock.
Can I get compensation for a delayed claim beyond the claim amount?
Yes. Delay can amount to a deficiency in service under the Consumer Protection Act, 2019. Consumer Commissions routinely order the claim paid with interest and add compensation for mental agony, harassment and litigation costs, depending on the evidence.
Sources & official references
- IRDAI regulation: the IRDAI (Protection of Policyholders’ Interests…) Regulations, 2024 and the Master Circular on Protection of Policyholders’ Interests, 2024 — settlement timelines and the insurer’s duty to pay interest at the bank rate + 2% for delayed settlement.
- IRDAI master circular: the IRDAI Master Circular on General Insurance Business, dated 11 June 2024 — a survey is mandatory for a motor own-damage loss of ₹50,000 or more, with defined surveyor and settlement turnaround times.
- Escalation: the IRDAI Bima Bharosa (IGMS) grievance portal; delay is also a deficiency in service under the Consumer Protection Act, 2019.
