You are here: Home » Finance » News » Insurance

Product mis-selling top-most complaint in life insurance but shows y-o-y decline

The finding was made by Integrated Grievance Management System, the repository of the insurance industry complaints

Mis-selling complaints which dominates the type of grievances in the life industry has seen a reduction in FY15 compared to FY14, said Insurance Regulatory and Development Authority of India (IRDAI) Annual Report 2014-15.

Data showed that unfair business practice complaints, also called mis-selling, constituted the largest class of complaints accounting for 52% of the complaints in life sector during 2014-15. However, they saw a drop as against 56% during 2013-14. This was followed by policy-servicing related complaints, which constituted 20% of the total complaints in the life sector during 2014-15.






Classification of life insurance complaints (in %)
  2013-14 2014-15
Claims 10 11
Others 8 8
Policy servicing 17 20
Proposal processing 7 8
Ulip related 2 1
Unfair business practice 56 52
Source: IRDAI Annual Report 2014-15

Integrated Grievance Management System (IGMS), the repository of the insurance industry complaints, provides a platform to raise customer grievances with insurers and also to generate various analytical reports on public grievances in insurance.

It showed that as on March 31, 2015, there were 6,109 complaints pending for resolution by life insurance companies. During the year 2014-15, the life insurance industry received 2,78,992 complaints out of which 80,944 complaints related to Life Insurance Corporation of India (LIC) and 1,98,048 complaints related to private sector life insurers.

Life insurers also had a good track-record in resolving complaints. During 2014-15, the life insurance companies resolved 97.82% of the complaints handled. The private life insurers resolved 96.93% of the complaints reported, while LIC resolved 100% of the complaints as a result of which there were no pending complaints of LIC as on March 31, 2015.

Status of Grievances-Life Insurers during 2014-15
Insurer Outstanding as on March 31, 2014 Grievances reported during 2014-15 Resolved during 2014-15 Outstanding as on March 31, 2015
LIC 0 80,994 80,944 0
Private 1180 1,98,048 1,93,119 6,109
Total 1180 2,78,992 2,74,063 6,109
Source: IRDAI Annual Report 2014-15  

In the non-life insurance segment, companies resolved 96.59% of the complaints handled during the year 2014-15. As on March 31, 2015, a total of 2,099 complaints were pending with the companies for resolution, out of which 1,662 belong to private sector and 487 pertain to public sector non-life insurance companies.

Status of Grievances-Non Life Insurers during 2014-15
Insurer Outstanding as on March 31, 2014 Grievances reported during 2014-15 Resolved during 2014-15 Outstanding as on March 31, 2015
Public 682 15,860 16,105 437
Private 152 44,828 43,318 1,662
Total 834 60,688 59,423 2,099
Source: IRDAI Annual Report 2014-15  

The pattern of complaints in IGMS data as regard to non-life insurance industry indicated that claims related complaints constitute major chunk of the complaints during 2014-15. In class-wise complaints, health insurance related complaints are having the highest number of complaints.

Classification of Non-Life Complaints (in %)
  2013-14 2014-15
Claim 43 44
Cover Note 1 1
Coverage 2 1
Others 14 15
Policy Related 34 32
Premium 3 3
Product 0 1
Proposal Related 1 1
Refund 2 2
Source: IRDAI Annual Report 2014-15

image
Business Standard
177 22
Business Standard

Product mis-selling top-most complaint in life insurance but shows y-o-y decline

The finding was made by Integrated Grievance Management System, the repository of the insurance industry complaints

M Saraswathy  |  Mumbai 

Insurance agents: Exits outnumber entry

Mis-selling complaints which dominates the type of grievances in the life industry has seen a reduction in FY15 compared to FY14, said Insurance Regulatory and Development Authority of India (IRDAI) Annual Report 2014-15.

Data showed that unfair business practice complaints, also called mis-selling, constituted the largest class of complaints accounting for 52% of the complaints in life sector during 2014-15. However, they saw a drop as against 56% during 2013-14. This was followed by policy-servicing related complaints, which constituted 20% of the total complaints in the life sector during 2014-15.






Classification of life insurance complaints (in %)
  2013-14 2014-15
Claims 10 11
Others 8 8
Policy servicing 17 20
Proposal processing 7 8
Ulip related 2 1
Unfair business practice 56 52
Source: IRDAI Annual Report 2014-15

Integrated Grievance Management System (IGMS), the repository of the insurance industry complaints, provides a platform to raise customer grievances with insurers and also to generate various analytical reports on public grievances in insurance.

It showed that as on March 31, 2015, there were 6,109 complaints pending for resolution by life insurance companies. During the year 2014-15, the life insurance industry received 2,78,992 complaints out of which 80,944 complaints related to Life Insurance Corporation of India (LIC) and 1,98,048 complaints related to private sector life insurers.

Life insurers also had a good track-record in resolving complaints. During 2014-15, the life insurance companies resolved 97.82% of the complaints handled. The private life insurers resolved 96.93% of the complaints reported, while LIC resolved 100% of the complaints as a result of which there were no pending complaints of LIC as on March 31, 2015.

Status of Grievances-Life Insurers during 2014-15
Insurer Outstanding as on March 31, 2014 Grievances reported during 2014-15 Resolved during 2014-15 Outstanding as on March 31, 2015
LIC 0 80,994 80,944 0
Private 1180 1,98,048 1,93,119 6,109
Total 1180 2,78,992 2,74,063 6,109
Source: IRDAI Annual Report 2014-15  

In the non-life insurance segment, companies resolved 96.59% of the complaints handled during the year 2014-15. As on March 31, 2015, a total of 2,099 complaints were pending with the companies for resolution, out of which 1,662 belong to private sector and 487 pertain to public sector non-life insurance companies.

Status of Grievances-Non Life Insurers during 2014-15
Insurer Outstanding as on March 31, 2014 Grievances reported during 2014-15 Resolved during 2014-15 Outstanding as on March 31, 2015
Public 682 15,860 16,105 437
Private 152 44,828 43,318 1,662
Total 834 60,688 59,423 2,099
Source: IRDAI Annual Report 2014-15  

The pattern of complaints in IGMS data as regard to non-life insurance industry indicated that claims related complaints constitute major chunk of the complaints during 2014-15. In class-wise complaints, health insurance related complaints are having the highest number of complaints.

Classification of Non-Life Complaints (in %)
  2013-14 2014-15
Claim 43 44
Cover Note 1 1
Coverage 2 1
Others 14 15
Policy Related 34 32
Premium 3 3
Product 0 1
Proposal Related 1 1
Refund 2 2
Source: IRDAI Annual Report 2014-15

RECOMMENDED FOR YOU

Product mis-selling top-most complaint in life insurance but shows y-o-y decline

The finding was made by Integrated Grievance Management System, the repository of the insurance industry complaints

The finding was made by Integrated Grievance Management System, the repository of the insurance industry complaints Mis-selling complaints which dominates the type of grievances in the life industry has seen a reduction in FY15 compared to FY14, said Insurance Regulatory and Development Authority of India (IRDAI) Annual Report 2014-15.

Data showed that unfair business practice complaints, also called mis-selling, constituted the largest class of complaints accounting for 52% of the complaints in life sector during 2014-15. However, they saw a drop as against 56% during 2013-14. This was followed by policy-servicing related complaints, which constituted 20% of the total complaints in the life sector during 2014-15.






Classification of life insurance complaints (in %)
  2013-14 2014-15
Claims 10 11
Others 8 8
Policy servicing 17 20
Proposal processing 7 8
Ulip related 2 1
Unfair business practice 56 52
Source: IRDAI Annual Report 2014-15

Integrated Grievance Management System (IGMS), the repository of the insurance industry complaints, provides a platform to raise customer grievances with insurers and also to generate various analytical reports on public grievances in insurance.

It showed that as on March 31, 2015, there were 6,109 complaints pending for resolution by life insurance companies. During the year 2014-15, the life insurance industry received 2,78,992 complaints out of which 80,944 complaints related to Life Insurance Corporation of India (LIC) and 1,98,048 complaints related to private sector life insurers.

Life insurers also had a good track-record in resolving complaints. During 2014-15, the life insurance companies resolved 97.82% of the complaints handled. The private life insurers resolved 96.93% of the complaints reported, while LIC resolved 100% of the complaints as a result of which there were no pending complaints of LIC as on March 31, 2015.

Status of Grievances-Life Insurers during 2014-15
Insurer Outstanding as on March 31, 2014 Grievances reported during 2014-15 Resolved during 2014-15 Outstanding as on March 31, 2015
LIC 0 80,994 80,944 0
Private 1180 1,98,048 1,93,119 6,109
Total 1180 2,78,992 2,74,063 6,109
Source: IRDAI Annual Report 2014-15  

In the non-life insurance segment, companies resolved 96.59% of the complaints handled during the year 2014-15. As on March 31, 2015, a total of 2,099 complaints were pending with the companies for resolution, out of which 1,662 belong to private sector and 487 pertain to public sector non-life insurance companies.

Status of Grievances-Non Life Insurers during 2014-15
Insurer Outstanding as on March 31, 2014 Grievances reported during 2014-15 Resolved during 2014-15 Outstanding as on March 31, 2015
Public 682 15,860 16,105 437
Private 152 44,828 43,318 1,662
Total 834 60,688 59,423 2,099
Source: IRDAI Annual Report 2014-15  

The pattern of complaints in IGMS data as regard to non-life insurance industry indicated that claims related complaints constitute major chunk of the complaints during 2014-15. In class-wise complaints, health insurance related complaints are having the highest number of complaints.

Classification of Non-Life Complaints (in %)
  2013-14 2014-15
Claim 43 44
Cover Note 1 1
Coverage 2 1
Others 14 15
Policy Related 34 32
Premium 3 3
Product 0 1
Proposal Related 1 1
Refund 2 2
Source: IRDAI Annual Report 2014-15
image
Business Standard
177 22
Widgets Magazine

More News

Widgets Magazine
Widgets Magazine
Advertisement

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard