المملكة: Instead of 15 days… reducing the period for settling insurance claims to 5 days – urgent

The Insurance Authority intends to bring about a radical change in the rules for settling financial claims for individuals, through a new project that reduces the time periods granted to insurance companies in an unprecedented way.

The proposed amendment is imposed on Article “44” of the executive regulations of the monitoring system Cooperative insurance companies, the period for processing individual claims should not exceed only five days from the date of completion of documents.

The project obligated companies to pay The settlement amount to the beneficiaries and deposit it within just two days from the end of the processing period, in a step aimed at accelerating the arrival of cash liquidity to those affected.

This new regulation comes to end the previous era in which companies were given a period of up to fifteen days for settlement, which could be extended for a similar period, which would have prolonged the wait.

The Authority granted limited flexibility in the new amendment, as the processing period may be extended to a maximum of only seven days, provided that the controller is notified.

This strict time reduction aims to motivate insurance companies to adopt digital transformation solutions and accelerate settlement processes, which will reflect positively on the sector’s behavior and quality of service.

The Authority kept the time frame for settling companies’ claims as is, with a maximum not exceeding forty-five days from receiving the necessary documents, given the nature of those claims.

The project included a clause that gives the Authority the authority to exclude some insurance products from these short periods, whenever necessary. The public interest or the nature of the product required this, to ensure the stability of the sector.

The Authority set a period of one week to appoint a loss estimator by the company, starting from the date of reporting the accident, to ensure that the evaluation procedures are not disrupted.

The amendment requires companies to notify the statutory controller with clear justifications in the event that the claims settlement period exceeds the periods specified in the regulations, to ensure transparency and oversight.

The project aims to protect the rights of the insured and beneficiaries directly, by eliminating Procrastination in payment and separating the technical processing period from the financial payment period.

The Authority presented this draft to seek the views of the public, those interested, and the private sector, in preparation for its approval and the start of implementing the new time standards.