Insurance complaints up 45% in Q2 2025, most about health policies: Report

Younger customers most active in disputing claims and policies, says Insurance Samadhan

Complaints about insurance almost doubled in the second half of the year compared to the first, said a report by a privately run grievance redressal platform on Wednesday.

 

Mis-selling and claim disputes were common complaints, said Insurance Samadhan in its Q2 2025 Trends Report. There were 684 complaints in Q1 and 974 in Q2, marking a growth of 45 per cent. The value of contested claims increased Rs 83.5 crore to Rs 119.5 crore — a surge of over 43 per cent.

 

Mis-selling

Complaints about mis-selling of insurance products increased by 11.2 per cent compared to Q2 2024, while the total value of such disputes grew nearly 10 per cent. Health insurance comprised almost 68 per cent of complaints, followed by life insurance at 25.5 per cent and general insurance at 6.9 per cent.

 

Customers complained that endowment policies were the most mis-sold product category, exposing them to penalties, lower returns, and capital erosion.

 

Policyholders aged 31 to 40 were the most active in filing complaints. Uttar Pradesh, the country’s most populous state, recorded the highest share of complaints (16 per cent).

 

“Policyholders, particularly younger generations, are standing up for their rights,” said Shilpa Arora, cofounder & chief operating officer of Insurance Samadhan.

 

Mis-selling complaints are rising likely due to high commissions and sales pressure on agents. Insurance Regulatory and Development Authority of India, the industry regulator, in 2022-23 reported that 20 per cent of complaints against life insurers were about mis-selling.

 

Platforms such as Insurance Samadhan, Bima Bharosha, and Polifyx are increasingly vital in safeguarding policyholder rights, making grievance redressal more accessible and transparent.