In the realm of life insurance, the timing of benefit payments is not merely a technical matter, it is a legal obligation.

We received a report from a client regarding a delay in receiving insurance benefits following an accident that occurred at the end of 2024. Although the customer submitted all required documents by the end of May 2025, the insurance company has yet to issue the payout, citing the need to wait for responses from relevant authorities.

This raises a critical question: Does an insurance company have the right to unilaterally extend the processing time without the policyholder’s consent?

1. Legal framework: clear and binding

According to Clause 1, Article 31 of the 2022 Law on Insurance Business, insurers must pay benefits within the timeframe agreed upon in the contract. If no specific timeline is stipulated, the maximum period allowed is 15 days from the date the insurer receives a complete and valid claim dossier. Any delay beyond this period without a legitimate reason or the policyholder’s agreement is considered a violation of the law.

2. Insurer’s response: additional verification required

The insurance company stated that the customer’s accident case showed unusual signs and required further verification in coordination with relevant authorities. While awaiting the outcome, the company is unable to make a final decision.

However, if the claim is approved but not paid within 30 days, the company commits to paying interest on the delayed amount, based on the provisional interest rate published on its website.

3. Advice for policyholders

When insurers cite various reasons to delay benefit payments, it clearly constitutes a breach of legal obligations. Interest payments for delayed compensation often do little to offset the actual losses suffered by the insured. Therefore, policyholders should take the following precautions:

• Always keep complete medical records and documents related to the insurance event.
• Carefully review the contract terms regarding payout timelines.
• If facing unexplained delays, contact the insurance regulatory authority directly for support.
• Stay vigilant against insurance fraud to protect your legitimate rights and the integrity of the system.