Section 123: Settlement of Insurance Claim

1) If an insurance claim has been presented as mentioned in an insurance policy to the insurer, the insurer shall evaluate the loss if required and settle the claim within the prescribed period from the date of presentation of the claim made in case there is not being the necessity of evaluation of loss.

2) If the insured or his/her, pursuant to the prevailing laws, is not found within the prescribed period or payment for the claim cannot beneficiary pursuant to the prevailing laws is not found within the prescribed period or, payment for the claim could not be made, such amount instead of claim shall be deposited in ‘unclaimed fund’ with the condition that it shall be paid at the time claim is made.

3) If the person entitled to receive the amount instead of insurance claim is not found, the insurer shall keep evidence of searching the insurer or beneficiary by any means, tried to contact or attempted adequately to make the payment of amount. The insurance claim is not found, the insurer shall keep evidence of searching the insurer or beneficiary by any means, tried to contact or attempting adequately to make the payment of the

4) The insurer shall submit the statement of unsettled claims to the Authority within the stipulated period.

5) Notwithstanding anything contained elsewhere in this Act, if a serious disaster, including other catastrophe situations, has arisen in any place or area of the country, the Authority may form and implement a separate working procedure related to insurance claims for a certain period for such a place that suffered from a catastrophe situation.

6) Other provisions relating to settling insurance claims and unclaimed funds shall be as prescribed.