Misselling grievances against life insurers up 14% in FY25, says Irdai

Mis-selling complaints against life insurers rose over 14% in FY25 even as total grievances dipped marginally, prompting Irdai to flag concerns and seek corrective action

Grievances registered against life insurers due to misselling rose 14.3 per cent year-on-year to 26,667 in FY25 from 23,335 a year earlier, according to the Insurance Regulatory and Development Authority of India’s (Irdai) annual report for FY25.  However, overall grievances against life insurers declined marginally to 120,429 in FY25 from 120,726 in the previous year. 

The insurance regulator has flagged concerns over misselling in India’s insurance sector and asked insurers to address the issue by conducting a root cause analysis to identify underlying causes. It has  advised insurers to implement measures such as assessing product suitability, introducing distribution channel to address complaints.