1.2 lac complaints received against insurance companies, People are not happy with private insurers

According to the Insurance Regulatory and Development Authority of India (IRDAI), over half of the complaints against private life insurers relate to Unfair Business Practices (UFBP).
Out of a total of 1,27,378 grievances registered in the last fiscal year, 26,107 were related to UFBP. Among these, 45,884 were in the private sector, constituting 54% of all complaints. In contrast, public sector insurers had significantly lower UFBP-related complaints (2978 out of 81,494), accounting for only 3.65%.
While the overall grievances in the life insurance industry decreased from 1,54,826 in the previous year to 1,27,378 in FY23, the regulator expressed concern about spurious calls falsely associated with IRDAI, IGMS, government agencies, and other financial institutions.
IRDAI has taken various measures, including public notices, press releases, advertisements in leading media, and directions to insurance companies, to caution the public against spurious calls. The regulator emphasized the need for insurers to address mis-selling issues by conducting root cause analyses, ensuring product suitability, implementing controls on channels based on vulnerability, and developing strategies to handle mis-selling complaints.
In its latest annual report, IRDAI highlighted the importance of public awareness in reducing mis-selling. Efforts in financial education aim to enhance financial literacy, educating the public about insurance concepts, policy types, covered risks, benefits, exclusions, and conditions.