Insurance Complaints Jump 45% in Q2 Amid Health Policy Disputes, Mis-Selling Issues

India’s insurance sector is witnessing a sharp rise in consumer grievances, reflecting persistent mis-selling and transparency challenges. According to Insurance Samadhan, one of the country’s largest private insurance grievance platforms, complaints increased by 45% in Q2 2025 compared to the previous quarter.

The Q2 Trends Report analysed 4,004 disputes involving claims worth Rs 75.4 crore. Complaints rose from 684 in Q1 to 974 in Q2, while the value of contested claims surged 43.1%, from Rs 83.5 crore to Rs 119.5 crore. This growth indicates a rising policyholder assertiveness, with many bypassing insurer grievance cells to seek independent redressal.

Health Insurance Disputes Dominate
Health insurance remained the primary source of grievances, accounting for 67.5% of all complaints, followed by life insurance (25.5%) and general insurance (6.9%). Endowment policies emerged as the most mis-sold category, exposing customers to penalties, reduced returns, and capital erosion.

Year-on-year, complaints linked to mis-selling rose 11.2% compared to Q2 2024, with the value of disputed claims increasing by nearly 10%. The 31–40 age group was the most active in filing complaints, reflecting a shift in consumer behavior toward demanding accountability. Geographically, Uttar Pradesh reported the highest share of grievances at 16%, signaling growing awareness beyond metropolitan areas.

Shilpa Arora, Co-founder and COO of Insurance Samadhan, said, “Policyholders, particularly younger generations, are standing up for their rights, leveraging platforms like Polifyx to ensure transparency and timely redressal. This drives our efforts to safeguard consumer interest and strengthen trust in the USD 145.80 billion insurance industry.”

Technology Simplifying Grievance Redressal
Insurance Samadhan’s Polifyx app, featuring a ‘Know Your Policy’ tool, has made grievance filing more accessible, enabling users to flag mis-selling and other discrepancies efficiently. The platform’s adoption demonstrates how technology is enhancing consumer confidence in challenging insurers.

The rise in complaints underscores ongoing concerns over unfair sales practices. IRDAI data shows that mis-selling accounted for 20% of all complaints against life insurers in 2022–23, with private insurers frequently implicated in deceptive sales tactics.

Since 2019, Insurance Samadhan has resolved over 20,000 grievances, recovering claims worth more than Rs 220 crore. The Q2 surge highlights both the vulnerabilities faced by policyholders and the growing role of independent platforms in ensuring accountability within India’s rapidly expanding insurance market.