Timely Relief or Systemic Delays: A Legal Appraisal of Claims Settlement Practices in India vs. the U.S.

Abstract

Insurance provides both individuals and organisations with financial protection against unforeseen dangers, making it an essential safety. Legal frameworks control the procedure and timetable for resolving insurance claims in both India and the US, but these systems' practical implementations vary greatly between the two nations. Even though Indian regulations require that claims be resolved within 30 days, bureaucratic obstacles, a lack of institutional support, and protracted legal challenges frequently cause the process to drag on. This can put policyholders in serious financial straits and defeat the whole point of having insurance. Conversely, the U.S. scheme, which is also endorsed by major organizations and state-based insurance departments, imposes stricter standards on insurers and ensures timeliness in claim settlement dates. Some intermediaries, like law enforcement and health care providers, are well integrated into the process as these entities help to expedite what can be lengthy procedures and minimize the burden on claimants. With an emphasis on the effects of institutional support, technological integration, and regulatory enforcement on the effectiveness of the claims process, this study compares the procedural differences in insurance claim settlements between India and the US. It draws attention to the causes of delays in India and compares them to the more effective U.S. procedures. The study also looks at ways to make the insurance claims process in India more open, effective, and policyholder-friendly by using best practices from the United States. The goal is to provide actionable suggestions that can strengthen the system, cut down on delays, and improve the experience for those who depend on insurance in times of need.