Money & Banking

Life insurance sector sees 28% jump in customer grievances in FY18: IRDAI

Our Bureau Hyderabad | Updated on January 12, 2019 Published on January 11, 2019

The number of customer complaints in the life insurance sector went up by 28 per cent in 2017-18, compared to the previous year.

According to the annual report for the year 2017-18, released by the Insurance Regulatory and Development Authority of India (IRDAI), the complaints went up to 1,54,367 in 2017-18 against 1,20,847 in 2016-17. The grievances were related to unfair business practices (majority), proposal processing, and policy servicing.

However, the resolution was at 99.87 per cent. While LIC resolved 100 per cent of the complaints, private life insurers resolved 99.74 per cent.

In the general insurance category, there was a 16 per cent reduction in the number of complaints at 43,995 against 52,104 in the previous year. A majority of the grievances were related to claims, followed by those related to policy, premium, refund, and proposals, among others.

The analysis of complaints under policy type indicates that health insurance complaints were more during the last three years, compared to the complaints reported under motor insurance. General insurers resolved 94.36 per cent of complaints handled by them.

The regulator has an Integrated Grievance Management Systems (IGMS), which is a repository of the insurance industry complaints. It works not only as a platform for raising customer grievances with insurers, but also generates various analytical reports on customer grievances registered against the insurers.

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Published on January 11, 2019
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