While the government is working to bring more people under insurance coverage, many existing policyholders are unhappy with their insurance companies.
A major reason for this dissatisfaction is the delay or rejection of insurance claims.
On Tuesday, the Finance Ministry shared important data about insurance-related complaints in Parliament. According to the data from the Insurance Regulatory
and Development Authority of India (IRDAI), most complaints in recent years were about companies not settling claims.
The total number of complaints has also increased over time:
2022-23: 2,02,640 complaints
2023-24: 2,15,569 complaints
2024-25: 2,57,790 complaints
Minister of State for Finance, Pankaj Chaudhary, shared this information in Parliament.
Main Reasons for Policyholder Complaints
According to a report, while answering a question by Rajya Sabha MP Medha Vishram Kulkarni, Pankaj Chaudhary explained the key reasons why people are filing complaints against insurance companies.
The most common issues include:
Claims being rejected without any proper reason
Non-payment of survival benefits
Non-payment of maturity benefits
Difference between the estimated loss and the amount paid by the insurer
In the financial year 2024-25, the highest number of complaints were reported against LIC, followed by Star Health and Allied Insurance Company Limited.
Insurance Companies with Highest Complaints (2024-25)
Here is the list of companies that received the most complaints:
LIC – 74,104 complaints
Star Health and Allied Insurance Company – 20,527 complaints
National Insurance Company Limited – 12,859 complaints
Care Health Insurance Limited – 10,281 complaints
United India Insurance Company – 10,126 complaints
Niva Bupa Health Insurance Company – 7,970 complaints
ICICI Lombard General Insurance – 7,781 complaints
The New India Assurance Company Limited – 7,768 complaints
HDFC ERGO General Insurance – 7,326 complaints
The Oriental Insurance Company – 6,854 complaints
