Settlement of claims

This chapter examines the relevant rules in relation to claim examination and settlement as provided in arts. 23–5 of the Insurance Law and relevant provisions in the SPC Interpretations II 2013 and discusses the insurer&s;s primary obligation of paying valid claims in a timely manner and the consequences for non-compliance with the obligation. A comparative discussion is also given on the English law and the UK Law Commissions’ recommendations for reform of the law in respect of the nature of the insurer&s;s obligation, the new provisions in s. 13A of the Insurance Act 2015, and the recent cases on the claims for damages due to late payment of insurance claims under s. 13A.