Indian regulator on side of policyholders

As expected, India’s insurance regulator has come down firmly in favour of the policyholder. The Insurance Regulatory & Development Authority (IRDA) said insurers will have to pay a penalty calculated at the rate of 10% a year in cases of undue delay in claims settlement. The IRDA also ruled the additional charge for riders or options to a policy should not exceed 30% of the basic premium.