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Insurance LIC of India claims 100% grievance redressal

LIC of India claims 100% grievance redressal

The life insurer industry has a 100% grievance resolving record in FY 2015-16.
Team Cafemutual Mar 10, 2017

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.

Overall, complaints under all segments had gradually come down last fiscal. In fact, the industry had witnessed a decline of 27% in complaints reported.

Type of Complaint

2014-15

2015-16

Unfair Business Practice

145129

100257

Policy Servicing

55869

43928

Claims

31076

24749

Proposal processing

20932

15599

ULIP related

4029

2808

Others

21957

17360

Total

278992

204701

Source: IRDAI annual report

 

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