Motor insurance rule change: No arbitrary claim rejection, quicker claim settlement, pay as you drive option must, says IRDAI

The latest IRDAI motor insurance rules prohibit arbitrary claim rejection and require insurers to settle claims more quickly, ensuring fairer treatment for policyholders. Insurers can now cancel a policy only in cases of proven fraud, with at least seven days’ notice, and cannot cancel mandatory third-party coverage except for double insurance or total loss. The new regulations also make "pay as you drive" options mandatory, offering more flexibility, and require insurers to provide a clear customer information sheet outlining all policy details and claim procedures. These changes aim to boost transparency, speed up settlements, and enhance consumer protection in motor insurance