**Executive Summary**
The Insurance Regulatory and Development Authority of India (IRDAI) has strengthened its regulatory framework for motor insurance claim settlements, mandating board-approved claim policies, transparent assessments, and time-bound settlements to protect policyholders' interests. The regulations aim to prevent arbitrary practices. Motor insurance complaints have decreased from 26.18% in FY 2023-24 to 24.8% in FY 2024-25.
**Key Points / Main Content**
* **Regulations & Guidelines:**
* IRDAI regulations require insurers to adopt transparent, time-bound, and fair claim-settlement processes.
* Insurers must have board-approved claim-settlement policies and disclose details of surveyors/loss assessors.
* Claim deductions and settlements must be transparent, reasonable, and supported by documentation.
* **Complaint Management:**
* Percentage of complaints in the motor segment has decreased from 26.18% in FY 2023-24 to 24.8% in FY 2024-25.
* Out of 10,156 complaints received by the Insurance Ombudsman, 9,943 have been disposed of.
* **Surveyor Engagement & Monitoring:**
* Losses under Rs. 50,000 in motor insurance need not be mandatorily surveyed by a registered surveyor. Insurers are using App-based AI-driven assessment for these claims.
* Insurers are required to monitor surveyor performance, examine deviations, and report violations to IRDAI.
* IRDAI may suspend a surveyor's license for unsatisfactory performance or violations.
* IRDAI issued 53 cautions and advisories to surveyors based on inspection observations from FY2022-23 to FY2024-25.
**Impact Analysis**
**Stakeholder: Motor Insurance Policyholders**
* **Impact:** Enhanced protection of their interests through transparent and fair claim settlement processes, reduced arbitrary practices, and improved complaint resolution.
* **Action Required:** Be aware of their rights, ensure they have adequate documentation, and report any concerns or violations to the insurer or IRDAI.
**Stakeholder: Insurance Companies**
* **Impact:** Compliance with stricter regulations, increased transparency, and potential for improved claim settlement efficiency.
* **Action Required:** Implement board-approved claim-settlement policies, ensure transparent processes, monitor surveyor performance, and comply with reporting requirements.
**Stakeholder: Insurance Surveyors/Loss Assessors**
* **Impact:** Increased scrutiny of performance, potential for license suspension for non-compliance, and adherence to a code of conduct.
* **Action Required:** Discharge duties professionally, adhere to the code of conduct, respond to IRDAI cautions/advisories, and remain up-to-date with regulatory changes.
Key Entities Referenced
IRDAI: The primary sector regulator, Insurance Regulatory and Development Authority of India, responsible for regulating and developing the insurance industry in India.
IRDAI (Protection of Policyholders' Interests, Operations and Allied Matters of Insurers) Regulations, 2024: Regulations by IRDAI outlining requirements for insurers related to claim settlement processes, disclosure of surveyor information, and fair claim handling.
Insurance Ombudsman: An entity that addresses complaints regarding insurance claims.
IRDAI (Insurance Surveyors and Loss Assessors) Regulations, 2015: Regulations by IRDAI governing the conduct and monitoring of insurance surveyors and loss assessors.
Ministry of Finance
IRDAI Strengthens Regulatory Framework for
Motor Insurance Claim Settlement
Framework mandates board-approved claim policies,
transparent assessments and time-bound settlements to
safeguard motor insurance policyholders
Motor insurance complaints fall from 26.18% in FY 2023-24
to 24.8% in FY 2024-25
प्रव तथ: 16 DEC 2025 5:57PM by PIB Delhi
The sector regulator, 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.
IRDAI (Insurance Surveyors and Loss Assessors) Regulations, 2015 provides for monitoring of surveyor
performance by insurers, including adherence to the prescribed code of conduct. Insurers are required to
examine any reported deviations, undertake necessary enquiries and report established violations to the
Authority. Such cases are processed in accordance with the regulatory framework.
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.
IRDAI has also issued 53 cautions and advisories to various surveyors as a part of regulatory action taken
on inspection observations during FY2022-23, FY2023-24 and FY2024-25.This information was given by the Minister of State in the Ministry of Finance Shri Pankaj Chaudhary in a
written reply to a question in Rajya Sabha today.
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