The Insurance Regulatory and Development Authority (IRDA) has asked insurance companies not to mechanically reject claims on technical grounds, like delay in filing claim documents.

IRDA has issued the directives following complaints that claims are being rejected on grounds of delay in intimation and submission of documents to insurers.

In a communication to insurance companies, the regulator said rejection of claims on purely technical grounds in a mechanical fashion will result in policy holders losing confidence in the insurance industry, giving rise to excessive litigation.