LIA Claims Interest Rates

24 Jun 2019

The LIA Statement of Life Insurance Practice requires interest to be paid for a claim that is paid more than two months from the date of receipt of written notification of the death. For endowment policies, interest is payable if the claims payment is made more than two months from the date of maturity.

Such interest is calculated using the LIA-claims interest rate, from the date of notification to the date of actual payment. This interest rate is updated every three months by LIA.

The LIA-claims interest rate is defined as the 12-month Fixed Deposit rate and month-end savings rates of the major local banks in the weightage of 80:20.

Rates applicable up to September 2019.