📷 Image: Wikimedia Commons / Srinivasan V
Business
NCDRC directs Oriental Insurance to pay 7% interest on claim
✍️ SCC Online
🗓 31 Oct 2026, 10:26 AM
👁 1
The National Consumer Disputes Redressal Commission has ordered Oriental Insurance to add 7% interest to a pending claim.
The National Consumer Disputes Redressal Commission (NCDRC) issued a ruling directing Oriental Insurance to pay interest at the rate of 7% on a claim that remains unsettled. The order was delivered after the insurer was found to have delayed the settlement beyond the timeframe prescribed under consumer law.
The commission’s decision underscores the regulatory expectation that insurers honor claim payments promptly and compensate claimants for the time value of money when delays occur. By mandating a 7% interest rate, the NCDRC aims to deter future postponements and protect consumer interests.
Industry observers note that the ruling may set a precedent for similar disputes, prompting insurers to review their claim‑processing timelines to avoid additional financial liabilities.
The commission’s decision underscores the regulatory expectation that insurers honor claim payments promptly and compensate claimants for the time value of money when delays occur. By mandating a 7% interest rate, the NCDRC aims to deter future postponements and protect consumer interests.
Industry observers note that the ruling may set a precedent for similar disputes, prompting insurers to review their claim‑processing timelines to avoid additional financial liabilities.