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5. The insurance company has delayed processing my claim. Can I claim interest due to such a delay?

If there is an express term in the insurance policy providing for payment of interest by the insurance company for having delayed the payment of a claim, a contractual right would exist for payment of interest in the event of delay, provided that the policyholder has not himself breached any terms in the insurance policy. However, it is very rare for insurance policies to include such a clause.

 

That stated, if it can be shown that there was an undue/improper delay on the part of the insurance company, a complaint can either be lodged with The Insurance Complaints Bureau (the "ICB") to seek to recover interest for the delay. If the claim falls within the Terms of Reference for the ICB, therefore, this is a potential avenue to be able to claim interest.

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