Customer grievances in India’s general insurance sector have increased sharply, raising concerns about claims handling, service standards and the communication of policy terms.
According to a Reserve Bank of India study cited in the report, complaints against general insurers nearly tripled to approximately 1.78 lakh in 2025-26, compared with their level in 2021-22. In contrast, complaints in the life insurance segment declined to around 1.20 lakh during the same period.
The increase indicates growing dissatisfaction among policyholders, particularly over claim settlement delays, claim rejections, partial payments and differences between customer expectations and actual policy coverage.
Health and general insurance grievances have become a major concern for the industry. Earlier data for 2024-25 showed that complaints in these segments rose by 41%, with claim-related matters accounting for a substantial share of grievances.
The trend also raises questions about whether policy conditions, exclusions, waiting periods, deductibles and claim procedures are being explained clearly at the point of sale. Inadequate communication can result in disputes when customers discover limitations only after submitting a claim.
Insurers may need to strengthen claims processing systems, improve coordination with hospitals and surveyors, provide clearer reasons for claim decisions and resolve grievances within prescribed timelines.
The sharp rise in complaints underlines the need for insurers to treat grievance data as an important indicator of service quality. Root-cause analysis, stronger internal controls and greater accountability across distribution and claims functions will be necessary to rebuild policyholder confidence.
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