The Insurance Regulatory Authority (IRA) has unveiled a new set of rules aimed at protecting policyholders from arbitrary and unfair rejection of claims by insurance companies.
Under the proposed regulations, insurers will now be required to honour valid claims even in situations where a driver’s licence has expired or premiums remain unpaid—so long as the policy was not formally cancelled before the incident occurred.
The new rules also prohibit insurers from relying on unreasonable technicalities or vague contract terms to deny legitimate claims.
According to the IRA, the reforms are designed to promote fairness, rebuild consumer confidence, and strengthen accountability in the insurance industry.
Industry observers say the proposal marks a significant shift toward more consumer-friendly regulation and could help reduce the number of unresolved claim disputes that have long undermined trust between insurers and policyholders.
The IRA said it would continue engaging stakeholders to ensure the smooth implementation of the new framework once it becomes law
