📷 Image: Wikimedia Commons / Srinivasan V
Business
NCDRC directs Oriental Insurance to add 7% interest on pending claim
✍️ SCC Online
🗓 01 Nov 2026, 06:32 AM
👁 18
The National Consumer Disputes Redressal Commission has ordered Oriental Insurance to pay interest at 7% on a pending insurance claim.
The National Consumer Disputes Redressal Commission (NCDRC) issued a ruling directing Oriental Insurance to include interest at a rate of 7% on a claim that remains unsettled.
According to the commission’s order, the insurer must calculate the interest from the date the claim was filed, applying the stipulated rate until the amount is fully paid to the claimant.
Oriental Insurance had previously contested the addition of interest, but the NCDRC’s decision underscores the regulator’s stance that policyholders are entitled to compensation for delays.
Legal experts note that the ruling could set a precedent for similar disputes, prompting other insurers to review their claim‑settlement practices to avoid comparable orders.
The decision reinforces consumer protection mechanisms in the insurance sector, emphasizing timely resolution of claims and fair compensation for policyholders.
According to the commission’s order, the insurer must calculate the interest from the date the claim was filed, applying the stipulated rate until the amount is fully paid to the claimant.
Oriental Insurance had previously contested the addition of interest, but the NCDRC’s decision underscores the regulator’s stance that policyholders are entitled to compensation for delays.
Legal experts note that the ruling could set a precedent for similar disputes, prompting other insurers to review their claim‑settlement practices to avoid comparable orders.
The decision reinforces consumer protection mechanisms in the insurance sector, emphasizing timely resolution of claims and fair compensation for policyholders.