As per Insurance Regulatory and Development Authority of India (Protection of Policyholders’ Interests) Regulations, 2017, if a claim is not decisioned within the defined regulatory timeframe, upon claim settlement, the Insurance Company is liable to pay penal interest on the claim amount from the time the last required document was received till the date on which the claim was processed. Penal interest will be 2% above the bank rate at the beginning of the financial year in which claim is being paid.