The Insurance Authority has launched a proposal to amend an article in the Executive Regulations of the Cooperative Insurance Companies Control System.
This initiative aims to address recurring delays in compensation payouts by redefining the timelines for claims processing and settlement in a way that better protects policyholders.
Under the proposed amendment, insurers would be required to process claims within five days from the date they receive all necessary documents- an effort designed to improve operational efficiency and enhance the customer experience.
In addition to processing timelines, the draft sets a firm deadline for financial settlement. Compensation payments must be deposited within two days after claim processing is completed, bringing the total standard turnaround time for individual claims to roughly seven days.
For corporate and commercial claims, the amendment establishes a maximum settlement period of 45 days, beginning once the documents and the loss assessor’s report are submitted. The Regulations also require that a loss assessor be appointed within one week of the incident being reported to prevent assessment-related delays.
The Authority allows some flexibility for individual claims, permitting insurers to extend the total timeframe to seven days in certain cases, provided that the regulatory supervisor is formally notified.
Companies must also clearly justify any delays beyond the prescribed periods for both individual and corporate claims.
The draft amendment further provides room for regulatory adaptability by allowing certain specialised insurance products to be exempted from these time limits when it serves the public interest, ensuring the framework can respond to market developments without compromising policyholder rights.