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The Insurance Regulatory and Development Authority of India (IRDAI) flagged a rise in complaints linked to unfair business practices, including mis-selling, even as the overall number of grievances across the insurance sector remained broadly unchanged in 2024–25.
According to the IRDAI Annual Report 2024–25, total grievances registered against life insurers stood at 1.20 lakh, largely unchanged from the previous year. However, complaints categorised under unfair business practices (UFBP) increased to 26,667, up from 23,335 a year earlier, raising their share of total grievances to over 22%.
The regulator said grievances related to unfair business practices primarily stemmed from issues such as product suitability, misleading disclosures, and sales practices that did not align with policyholder needs. Life insurance continued to account for a significant portion of such complaints.
IRDAI noted that while most UFBP-related grievances were resolved during the year, the increase in their volume remained a concern from a consumer protection perspective. The report showed that a portion of these complaints were decided in favour of policyholders, while others were either partially upheld or rejected after review.
On the grievance redressal front, IRDAI said insurers disposed of the majority of complaints received through the Bima Bharosa portal during the year. As of March 31, 2025, pending grievances remained limited, with most cases resolved within 30 days.
The regulator reiterated that insurers are required to maintain internal grievance redressal mechanisms and dedicated committees to monitor claims and policyholder complaints. IRDAI also cautioned insurers against misleading sales practices and emphasised the need for root-cause analysis to prevent repeat grievances.
According to the IRDAI Annual Report 2024–25, total grievances registered against life insurers stood at 1.20 lakh, largely unchanged from the previous year. However, complaints categorised under unfair business practices (UFBP) increased to 26,667, up from 23,335 a year earlier, raising their share of total grievances to over 22%.
The regulator said grievances related to unfair business practices primarily stemmed from issues such as product suitability, misleading disclosures, and sales practices that did not align with policyholder needs. Life insurance continued to account for a significant portion of such complaints.
IRDAI noted that while most UFBP-related grievances were resolved during the year, the increase in their volume remained a concern from a consumer protection perspective. The report showed that a portion of these complaints were decided in favour of policyholders, while others were either partially upheld or rejected after review.
On the grievance redressal front, IRDAI said insurers disposed of the majority of complaints received through the Bima Bharosa portal during the year. As of March 31, 2025, pending grievances remained limited, with most cases resolved within 30 days.
The regulator reiterated that insurers are required to maintain internal grievance redressal mechanisms and dedicated committees to monitor claims and policyholder complaints. IRDAI also cautioned insurers against misleading sales practices and emphasised the need for root-cause analysis to prevent repeat grievances.
