Life insurance is generally considered a strong foundation for a family’s financial security. It provides financial support to the family in case of any unforeseen event. However, in recent years, many policyholders have faced problems such as mis-selling of policies, delays in claim payments, partial payments, or claim rejections. In such cases, consumers file their complaints with the Insurance Ombudsman. Recent data shows that thousands of people are filing complaints against insurance companies every year.

Key Figures Revealed in the CIO Annual Report

The Council of Insurance Ombudsmen’s (CIO) report for the financial year 2024-25 details the complaints filed against the country’s leading life insurance companies. The objective of this report is to assess the customer service quality and grievance redressal mechanisms of insurance companies. According to the report, the main reasons for policyholder dissatisfaction are mis-selling, poor service, and claim-related disputes.

Which Companies Received the Most Complaints?

According to the report, Bharti AXA Life Insurance received the highest number of complaints, 2,770, in the financial year 2024-25. This was followed by Life Insurance Corporation of India (LIC) with 1,951 complaints. However, due to LIC’s very large customer base, the ratio of complaints is considered low compared to the company’s size.

The Situation of Other Major Companies Also Under Scrutiny

During the same period, HDFC Life received 1,320 complaints, PNB MetLife received 1,060, and Bajaj Allianz Life received 998 complaints. Among the top companies, Kotak Mahindra Life Insurance received the fewest complaints, 555. These figures indicate that customer service and claim processing remain a major issue in the insurance sector.

Pending Complaint Figures Also Cause for Concern

As of March 31, 2025, Bharti AXA Life Insurance had 503 pending complaints. Following this, LIC had 184 and HDFC Life had 174 pending complaints. Edelweiss Life Insurance had the fewest pending complaints, with only 87. This indicates that the speed of complaint resolution still needs improvement in many companies.

Mis-selling of policies is a major issue in the insurance sector

The problem of mis-selling policies in the insurance sector is also continuously increasing. According to recent data, complaints related to unfair trade practices have steadily risen, and their share in the total number of complaints has also increased. This clearly shows that a lack of information at the time of purchasing a policy can be risky for customers.

Important precautions for customers

Experts believe that it is crucial to understand all the terms and conditions before buying a policy. Instead of relying solely on the agent’s words, customers should read the policy document carefully. They should also understand the claim process, required documents, and rules beforehand. If any problem arises, a complaint can be filed and resolved through the insurance ombudsman.

About the Author

Rohit P

My name is Rohit Pal, and I have been working in the field of journalism for the past five years. During this time, I have written on a variety of topics, including business, automobiles, technology, and politics. I have worked with several major organizations and am currently working with Timesbull.

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