Life insurance companies have redressed almost all the complaints they have received during FY 2015-16, shows IRDAI’s data.
LIC has a record of 100 % grievance redressal with no pending complaints in FY 2015-16. The PSU insurer resolved all the 64,750 complaints reported during FY 2015-16.
The private insurers were not far behind LIC with a record of resolving 99.3% of the complaints. The private insurers had over 1,40,000 complaints reported during the year. They resolved 1.45 lakh complaints in FY 2015-16. However, they had 935 complaints pending as for FY 2015-16.
Complaints related to unfair business practices remained the highest. However, if the past 2 years’ data are to be considered it has reduced by over 30%. Policyholder’s grievances against life insurance companies for unfair business practice decreased by as much as 31% or one lakh complaints in FY 2015-16 compared to 1.45 lakh in FY 2014-15. Experts attributed this to reduced mis-selling by banks due to stringent norms introduced by the IRDAI to curb mis-selling.
Source: IRDAI annual report