Section 8(5) in The Insurance Regulatory And Development Authority (Protection Of Policy-Holders' Interests) Regulations, 2002
(5)Where there is a delay on the part of the insurer in processing a claim for a reason other than the one covered by sub-regulation (4), the life insurance company shall pay interest on the claim amount 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.
