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Policy servicing and unfair business practices which includes mis-selling of policies are the two major concerns of policyholders of life insurance policies, shows an analysis done by Cafemutual.
While issue with policy servicing accounts for 24% of the total complaints received by insurance companies, unfair business practices contribute 22% to the total compliant book in FY 2023.
The analysis shows that of the total 1.24 lakh complaints, 29,667 pertained to policy servicing issues. Another 27,311 and 25,511 were related to unfair business practices and settlement of survival claims, respectively.
The remaining 41,330 complaints were on proposal processing, death claims and ULIPs (Unit Linked Insurance Plans) among others.
|
Complaint Type |
Number |
% of Total |
|
Policy Servicing |
29,667 |
24.0% |
|
Unfair Business Practices |
27,311 |
22.1% |
|
Others |
25,988 |
21.0% |
|
Survival Claims |
25,511 |
20.6% |
|
Proposal Processing |
8,482 |
6.9% |
|
Death Claims |
6,471 |
5.2% |
|
ULIP Related |
389 |
0.3% |
|
Total |
1,23,819 |
100.0% |
1. Source: Company disclosures 2. Audited disclosures were not available for all companies
Life insurer-wise complains
With 81,515 complaints, LIC India registered more complaints than all private players put together. However, LIC sells over 2 crore policies in a year, which is much more than private counterparts.
In the private space, Max Life Insurance reported the highest number of complaints at 4,490 and SBI Life Insurance had the next highest complaint count of 4,463. Three more insurers - HDFC Life Insurance, ICICI Prudential Life Insurance and IndiaFirst Life Insurance received over 3,000 complaints.
|
Name |
Total |
|
Life Insurance Corporation of India |
81,515 |
|
Max Life Insurance |
4,490 |
|
SBI Life Insurance |
4,463 |
|
HDFC Life Insurance |
3,876 |
|
ICICI Prudential Life Insurance |
3,527 |
|
IndiaFirst Life Insurance |
3,356 |
|
Bharti AXA Life Insurance |
2,993 |
|
PNB MetLife India Insurance |
2,739 |
|
Bajaj Allianz Life Insurance |
2,676 |
|
Tata AIA Life Insurance |
2,085 |
|
Aditya Birla Sun Life Insurance |
1,864 |
|
Kotak Mahindra Life Insurance |
1,834 |
|
Star Union Dai-ichi Life Insurance |
1,248 |
|
Canara HSBC Oriental Bank of Commerce Life Insurance |
1,144 |
|
Reliance Nippon Life Insurance |
1,089 |
|
Future Generali India Life Insurance |
974 |
|
Shriram Life Insurance |
964 |
|
Aviva Life Insurance |
961 |
|
Edelweiss Tokio Life Insurance |
953 |
|
AGEAS Federal Life Insurance |
490 |
|
Aegon Life Insurance |
293 |
|
Pramerica Life Insurance |
285 |
|
Total |
1,23,819 |
1. Source: Company disclosures 2. Audited disclosures were not available for all companies
