Section 9(6) in The Insurance Regulatory And Development Authority (Protection Of Policy-Holders' Interests) Regulations, 2002
(6)Upon acceptance of an offer of settlement as stated in sub-regulation (5) by the insured, the payment of the amount due shall be made within seven days from the date of acceptance of the offer by the insured. In the case of delay in the payment, the insurer shall be liable to pay interest at a rate which is 2 per cent. above the bank rate prevalent at the beginning of the financial year in which the claim is reviewed by it.
