While the government is trying to bring more people under insurance coverage, many existing policyholders are unhappy with their insurance companies.
The Finance Ministry recently shared important data in Parliament about complaints related to insurance services.
According to the data from the Insurance Regulatory and Development Authority of India (IRDAI), the most common complaint in the financial years 2022-23, 2023-24, and 2024-25 was that insurance companies were not settling claims.
The number of complaints has also increased every year:
2022-23: 2,02,640 complaints
2023-24: 2,15,569 complaints
2024-25: 2,57,790 complaints
This information was shared by Minister of State for Finance, Pankaj Chaudhary.
Main Reasons for Complaints by Policyholders
According to a report, Pankaj Chaudhary explained in the Rajya Sabha (while answering a question by MP Medha Vishram Kulkarni) that apart from claim settlement issues, there are four other major reasons for complaints:
Claims being rejected without any clear reason
Non-payment of survival benefits
Non-payment of maturity benefits
Difference between estimated loss and the amount paid by the insurer
Companies with the Highest Complaints (2024-25)
In the financial year 2024-25, the highest number of complaints were filed against LIC. Star Health and Allied Insurance Company ranked second.
Here is the list of top 10 companies with the most complaints:
LIC – 74,104 complaints
Star Health and Allied Insurance Company – 20,527
National Insurance Company Limited – 12,859
Care Health Insurance Limited – 10,281
United India Insurance Company – 10,126
Niva Bupa Health Insurance Company – 7,970
ICICI Lombard General Insurance – 7,781
The New India Assurance Company Limited – 7,768
HDFC ERGO General Insurance – 7,326
The Oriental Insurance Company – 6,854
