Hi, there seems to be some bug in the live chess in 2-1 settings. I had a game (see blow), which I should have won on time (my opponent's clock reached 0) but instead the system says insufficient material and thus a draw?!

http://www.chess.com/livechess/game.html?id=281137474

Can someone please confirm this is a known issue or not, and if it would be fixed soon. Thanks!

Not a bug. The site declares insufficient material regardless of helpmate possibilities. Assumes internet players would be trying to win on time rather than by normal means.

See  http://support.chess.com/Knowledgebase/Article/View/40/0/how-do-i-claim-a-draw

"Finally, note that in cases where the opponent has insufficient material to mate (lone King, King + Knight, King + Bishop, King + 2 Knights) a draw will be automatically declared where there is a time-out."

Your last statement is indeed very interesting. If I understand it correctly, it could actually mean that if black doesn't have enough material to mate white, white will NEVER lose on time. The worst could happen is that a draw will be declared when white's clock reaches zero. 

I wasn't aware of that previously. Thanks for mentioning it.

Yes! If the losing side (the side with no mating material) runs out of time, the game is drawn.

If the winning side runs out of time, game is lost. The rationale is that the winning side should have won.  :)