How long does an insurer have to pay a valid claim, and is there interest for delay?
Last updated: 2026-07-11 · Educational content; not legal advice.
Short answer
For a non-life claim, RA 10607 (the Amended Insurance Code) Section 249 requires the insurer to pay within 30 days after proof of loss is received and the loss is ascertained by agreement or arbitration; if that ascertainment is not made within 60 days of the proof of loss, the claim must be paid within 90 days of receipt. For a life-insurance claim, Section 248 requires proceeds to be paid immediately on maturity, or — where the policy matures by the death of the insured — within 60 days after the claim and proof of death are presented. If the insurer refuses or fails to pay within the time prescribed and the refusal is not based on fraud, Section 250 makes it liable for interest at twice the ceiling prescribed by the Monetary Board for the duration of the delay.
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Frequently asked
When does the 30-day clock start?
Under RA 10607 Section 249 it starts when the insurer receives your proof of loss and the amount is ascertained — by agreement between you and the insurer, or by arbitration. This is why submitting a complete, dated proof of loss matters: it fixes the start of the period the insurer must beat.
What is 'twice the ceiling prescribed by the Monetary Board'?
RA 10607 Section 250 does not state a flat percentage; it pegs the penalty interest to twice whatever interest ceiling the Bangko Sentral's Monetary Board has set, running for the whole period of the delay. The point is that unreasonable delay is expensive for the insurer — cite Section 250 in your demand.
Does the interest apply if my claim really was doubtful?
The penalty interest under Section 250 does not apply where the refusal or failure to pay is based on the ground that the claim is fraudulent. But a genuine, good-faith dispute that the insurer loses can still expose it to interest for the delay — the safeguard is only for fraud, not for an insurer that simply guessed wrong.
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Your rights as a policyholder or HMO member — what to do when an insurance claim is denied or delayed, how long an insurer has to pay a valid claim and the interest it owes for unreasonable delay (RA 10607, the Amended Insurance Code), the 2-year incontestability clause on life policies, HMO coverage and pre-existing-condition denials (now regulated by the Insurance Commission under EO 192 s.2015), what CTPL motor insurance covers and the no-fault indemnity, premium grace periods and lapsed policies, cash surrender value when you cancel, and how to file a complaint with the Insurance Commission.