Insurance Regulatory and Development Authority of India (IRDAI) has taken various regulatory measures for protection of policyholders’ interests which require insurers to adopt transparent, time-bound and fair claim-settlement processes. The Regulations form the primary legal instrument to prevent arbitrary or coercive practices during motor claim settlement.

The IRDAI (Protection of Policyholders’ Interests, Operations and Allied Matters of Insurers) Regulations, 2024 stipulate that insurers must have board-approved claim-settlement policies, disclose the roles, duties and appointment details of surveyors/loss assessors to the insured, and ensure that all claim deductions and settlements are transparent, reasonable and supported by documentary explanation.

IRDAI has reported that the percentage of complaints in motor segment to total complaints was 26.18% in FY 2023-24, which has come down to 24.8% in FY 2024-25. Further, out of total 10,156 complaints received by Insurance Ombudsman under motor insurance category during FY2022-23, FY2023-24 and FY2024-25, a total of 9,943 were disposed (awarded, withdrawn and non-entertainable), and rest are under process.

As per provision of the Master Circular on Protection of Policyholders' Interests, 2024, in motor insurance, any loss that less than Rs. 50,000/- need not be mandatorily surveyed by a registered surveyor. Insurers are using App based methodology with AI-Driven assessment for the same. Further, IRDAI may suspend a license of a surveyor under various grounds such as failure to discharge the duties and responsibilities in a satisfactory and professional manner, violation of code of conduct specified in the Regulations, acting prejudicial to the interest of the policyholders etc.

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