Parliament Question: Rising grievances on insurance claim settlement delays

GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES RAJYA SABHA UNSTARRED QUESTION No. 2785 ANSWERED ON TUESDAY, 17 MARCH, 2026/ 26 PHALGUNA, 1947 (SAKA) RISING GRIEVANCES ON INSURANCE CLAIM SETTLEMENT DELAYS 2785 DR. MEDHA VISHRAM KULKARNI: Will the Minister of Finance be pleased to state? (a) whether Government has taken cognizance of rising complaints regarding delay and repudiation of insurance claims by private insurers, if so, the details thereof; (b) the number of grievances received by the Insurance Regulatory and Development Authority of India during the last three years, company-wise; (c) whether Government has reviewed clauses such as mis-selling and pre-existing disease; and (d) the corrective steps taken or proposed to ensure timely settlement of genuine claims and protect policyholders? ANSWER THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY) (a) & (b): Figures furnished by Insurance Regulatory and Development Authority of India (IRDAI) for the total number of complaints and the number of complaints received on claims and related issues (FY 2022-23, FY 2023-24 and FY 2024-25) are as below: Year Total Complaints Claim related Percentage of % of complaints complaints towards complaints complaints to pertains to claims and percentage of the total number of private insurers related issues total complaints policies issued 2024-25 2,57,790 1,26,412 49.04 0.00767 56.67 2023-24 2,15,569 1,00,996 46.85 0.00597 51.63 2022-23 2,02,640 84,009 41.45 0.00629 49.85 The 5 main reasons for complaints on claims and its percentage to total complaints on claims are given below: S. No. Particular FY 22-23 FY 23-24 FY 24-25 1 Insurer not disposed of the claim 15.2 13.99 15.07 2 Claim repudiated without giving reasons 3.15 5.34 6.54 3 Survival Benefit is not paid 4.35 3.77 3.74 4 Maturity claim is not paid 3.48 3.49 2.96Difference between assessed loss and 5 amount settled by Insurer. 1.06 2.17 2.40 The company-wise grievances received in last three years are placed at annexure. (c): The stipulation on mis-selling and pre-existing disease have been reviewed. Waiting period for pre-existing disease has been reduced to 3 years from the earlier 4 years vide IRDAI (Insurance Products) Regulations, 2024 notified on 22.03.2024. Further, in order to curb the mis-selling, the IRDAI has 1. defined “mis-selling” under IRDAI (Protection of Policyholders’ Interests, Operations and Allied Matters of Insurers) Regulations, 2024. 2. specified that the Board policy of the insurer shall dwell on the measures to curb mis- selling, force-selling and mis-leading sales. 3. specified the mechanism to be put in place to avoid mis-selling of insurance policies. 4. mandated suitability analysis for saving based Insurance Products and Annuity products except those sold to NPS subscriber(s). 5. extended Free Look Period: A uniform period of 30 days is made applicable for Health and Life insurance policies. (d): Various steps to ensure that insurance companies settle the claims in timely manner and to protect the interest of the policyholders Some of measure taken in this regard are as under: i. No claim shall be repudiated without the approval of Product Management Committee (PMC) or a three-member sub-group of PMC called the Claims Review Committee (CRC). ii. No claim shall be rejected or closed for want of documents or for delayed intimation of claim. iii. In case, the claim is repudiated or rejected or disallowed partially, details shall be communicated to the claimant along with full details giving reference to the specific terms and conditions of the policy document. iv. Timelines for settlement of claims have been specified. Further, in case of delay in settlement of claims, the insurers are required to pay penal interest from the date of intimation or due date of the claim, whichever is applicable, with the penal interest of bank rate plus 2 percent. *****Annexure referred in reply to parts (a) & (b) of Rajya Sabha unstarred Question No. 2785 for 17.03.2026 Company wise grievances received in FY 2024-25 Company Insurance type Complaints Life Insurance Corporation of India Life Insurance 74104 Star Health And Allied Insurance Company Limited Non Life Insurance 20527 National Insurance Company Limited Non Life Insurance 12859 Care Health Insurance Limited Non Life Insurance 10281 United India Insurance Company Limited Non Life Insurance 10126 Niva Bupa Health Insurance Company Limited Non Life Insurance 7970 ICICI Lombard General Insurance Company Limited Non Life Insurance 7781 The New India Assurance Co. Ltd. Non Life Insurance 7768 HDFC Ergo General Insurance Company Ltd. Non Life Insurance 7326 The Oriental Insurance Company Ltd. Non Life Insurance 6854 Aditya Birla Health Insurance Co. Limited Non Life Insurance 5329 Max Life Insurance Company Limited Life Insurance 5165 HDFC Standard Life Insurance Co. Ltd Life Insurance 4744 SBI General Insurance Co. Ltd. Non Life Insurance 4503 Bharti-Axa Life Insurance Company LTD Life Insurance 3892 Bajaj Allianz Life Insurance Company Ltd Life Insurance 3827 Bajaj Allianz General Insurance Company Ltd Non Life Insurance 3807 Shriram General Insurance Co. LTD. Non Life Insurance 3733 IFFCO TOKIO General Insurance Co. Ltd. Non Life Insurance 3697 TATA AIG General Insurance Company Ltd. Non Life Insurance 3577 ICICI Prudential Life Insurance Company Ltd Life Insurance 3557 Cholamandalam MS General Insurance Company Ltd. Non Life Insurance 3467 Reliance General Insurance Co Ltd Non Life Insurance 3396 Tata AIA Life Insurance Company LTD Life Insurance 3391 SBI Life Insurance Co. Ltd. Life Insurance 3041 Shriram Life Insurance Company Ltd. Life Insurance 2869 Go Digit General Insurance Limited Non Life Insurance 2362 PNB MetLife India Insurance Company Ltd. Life Insurance 2296 ManipalCigna Health Insurance Company Limited Non Life Insurance 2041 Kotak Life Insurance Company Ltd Life Insurance 1911 IndiaFirst Life Insurance Company Limited Life Insurance 1803 Birla SunLife Insurance Company Limited Life Insurance 1494 Acko General Insurance Limited Non Life Insurance 1441 Star Union Dai-ichi Life Insurance Company Limited Life Insurance 1376 Reliance Nippon Life Insurance Company Limited Life Insurance 1288 Universal Sompo General Insurance Company Limited Non Life Insurance 1259 Future Generali India Insurance Company limited Non Life Insurance 1211 Agriculture Insurance Company of India Limited Non Life Insurance 1098 Canara HSBC Life Insurance Company Limited Life Insurance 1097 Royal Sundaram General Insurance Co. Limited Non Life Insurance 1052 Edelweiss Tokio Life Insurance Life Insurance 910 Future Generali India Life Insurance Company Limited Life Insurance 804Aviva Life Insurance Company India Limited Life Insurance 684 Magma HDI General Insurance Co Ltd Non Life Insurance 673 Liberty General Insurance Limited Non Life Insurance 609 Pramerica Life Insurance Limited Life Insurance 588 Zurich Kotak General Insurance Company (India) Ltd Non Life Insurance 547 Zuno General Insurance Ltd Non Life Insurance 491 Kotak Mahindra General Insurance Company Limited Non Life Insurance 436 IDBI Federal Life Insurance Co Ltd Life Insurance 407 Navi General Insurance Limited Non Life Insurance 367 Sahara India Life Insurance Co. Ltd. Life Insurance 346 Bandhan Life Insurance Limited Life Insurance 299 Kshema General Insurance Limited Non Life Insurance 276 Raheja QBE General Insurance Company Limited Non Life Insurance 273 Export Credit Guarantee Corporation of India Ltd Non Life Insurance 220 Acko Life Insurance Ltd Life Insurance 213 Go Digit Life Insurance Limited Life Insurance 206 Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited Life Insurance 89 CreditAccess Life Insurance Limited Life Insurance 12 AEGON Life Insurance Company Limited Life Insurance 10 Exide Life Insurance Company Limited Life Insurance 6 Narayana Health Insurance Limited Non Life Insurance 3 Bharti AXA General Insurance Company Limited Non Life Insurance 1 Grand Total 257790 Company wise grievances received in FY 2023-24 Company Insurance type Complaints Life Insurance Corporation of India Life Insurance 80963 Star Health And Allied Insurance Company Limited Non Life Insurance 16572 United India Insurance Company Limited Non Life Insurance 7183 The New India Assurance Co. Ltd. Non Life Insurance 6597 Care Health Insurance Limited Non Life Insurance 6494 HDFC Ergo General Insurance Company Ltd. Non Life Insurance 6020 National Insurance Company Limited Non Life Insurance 5671 ICICI Lombard General Insurance Company Limited Non Life Insurance 5171 Niva Bupa Health Insurance Company Limited Non Life Insurance 5165 Max Life Insurance Company Limited Life Insurance 4290 HDFC Standard Life Insurance Co. Ltd Life Insurance 4045 Aditya Birla Health Insurance Co. Limited Non Life Insurance 3918 The Oriental Insurance Company Ltd. Non Life Insurance 3831 TATA AIG General Insurance Company Ltd. Non Life Insurance 3793 ICICI Prudential Life Insurance Company Ltd Life Insurance 3629 Bajaj Allianz Life Insurance Company Ltd Life Insurance 3054 SBI Life Insurance Co. Ltd. Life Insurance 2952 Bajaj Allianz General Insurance Company Ltd Non Life Insurance 2857 Bharti-Axa Life Insurance Company LTD Life Insurance 2796 Tata AIA Life Insurance Company LTD Life Insurance 2651Reliance General Insurance Co Ltd Non Life Insurance 2644 IndiaFirst Life Insurance Company Limited Life Insurance 2367 PNB MetLife India Insurance Company Ltd. Life Insurance 2353 SBI General Insurance Co. Ltd. Non Life Insurance 2289 IFFCO TOKIO General Insurance Co. Ltd. Non Life Insurance 1894 Cholamandalam MS General Insurance Company Ltd. Non Life Insurance 1794 Go Digit General Insurance Limited Non Life Insurance 1740 ManipalCigna Health Insurance Company Limited Non Life Insurance 1707 Kotak Life Insurance Company Ltd Life Insurance 1561 Birla SunLife Insurance Company Limited Life Insurance 1404 Agriculture Insurance Company of India Limited Non Life Insurance 1397 Acko General Insurance Limited Non Life Insurance 1346 Star Union Dai-ichi Life Insurance Company Limited Life Insurance 1314 Shriram Life Insurance Company Ltd. Life Insurance 1290 Universal Sompo General Insurance Company Limited Non Life Insurance 1255 Reliance Nippon Life Insurance Company Limited Life Insurance 1091 Canara HSBC Life Insurance Company Limited Life Insurance 1037 Edelweiss Tokio Life Insurance Life Insurance 968 Future Generali India Insurance Company limited Non Life Insurance 908 Shriram General Insurance Co. LTD. Non Life Insurance 908 Aviva Life Insurance Company India Limited Life Insurance 857 Royal Sundaram General Insurance Co. Limited Non Life Insurance 845 Future Generali India Life Insurance Company Limited Life Insurance 761 Zurich Kotak General Insurance Company (India) Ltd Non Life Insurance 735 Liberty General Insurance Limited Non Life Insurance 624 IDBI Federal Life Insurance Co Ltd Life Insurance 496 Magma HDI General Insurance Co Ltd Non Life Insurance 479 Navi General Insurance Limited Non Life Insurance 471 Pramerica Life Insurance Limited Life Insurance 306 Export Credit Guarantee Corporation of India Ltd Non Life Insurance 283 Bandhan Life Insurance Limited Life Insurance 237 Sahara India Life Insurance Co. Ltd. Life Insurance 216 Zuno General Insurance Ltd Non Life Insurance 170 Raheja QBE General Insurance Company Limited Non Life Insurance 116 Go Digit Life Insurance Limited Life Insurance 54 Grand Total 215569 Company wise grievances received in FY 2022-23 Company Insurance Type Complaints Life Insurance Corporation of India Life Insurance 81302 Star Health And Allied Insurance Company Limited Non Life Insurance 12465 National Insurance Company Limited Non Life Insurance 6310 United India Insurance Company Limited Non Life Insurance 5905 The New India Assurance Co. Ltd. Non Life Insurance 5189 HDFC Ergo General Insurance Company Ltd. Non Life Insurance 4921 Care Health Insurance Limited Non Life Insurance 4876 ICICI Lombard General Insurance Company Limited Non Life Insurance 4598SBI Life Insurance Co. Ltd. Life Insurance 4502 Max Life Insurance Company Limited Life Insurance 4203 The Oriental Insurance Company Ltd. Non Life Insurance 3762 Niva Bupa Health Insurance Company Limited Non Life Insurance 3753 HDFC Standard Life Insurance Co. Ltd Life Insurance 3610 ICICI Prudential Life Insurance Company Ltd Life Insurance 3531 Bharti-Axa Life Insurance Company LTD Life Insurance 3417 IndiaFirst Life Insurance Company Limited Life Insurance 3376 TATA AIG General Insurance Company Ltd. Non Life Insurance 3091 PNB MetLife India Insurance Company Ltd. Life Insurance 2734 Bajaj Allianz Life Insurance Company Ltd Life Insurance 2670 Bajaj Allianz General Insurance Company Ltd Non Life Insurance 2626 Aditya Birla Health Insurance Co. Limited Non Life Insurance 2475 Cholamandalam MS General Insurance Company Ltd. Non Life Insurance 2108 Reliance General Insurance Co Ltd Non Life Insurance 2003 Birla SunLife Insurance Company Limited Life Insurance 1888 Kotak Life Insurance Company Ltd Life Insurance 1831 Universal Sompo General Insurance Company Limited Non Life Insurance 1819 IFFCO TOKIO General Insurance Co. Ltd. Non Life Insurance 1756 SBI General Insurance Co. Ltd. Non Life Insurance 1739 Tata AIA Life Insurance Company LTD Life Insurance 1580 Star Union Dai-ichi Life Insurance Company Limited Life Insurance 1284 ManipalCigna Health Insurance Company Limited Non Life Insurance 1276 Canara HSBC Life Insurance Company Limited Life Insurance 1217 Royal Sundaram General Insurance Co. Limited Non Life Insurance 1115 Reliance Nippon Life Insurance Company Limited Life Insurance 1070 Agriculture Insurance Company of India Limited Non Life Insurance 1055 Go Digit General Insurance Limited Non Life Insurance 1038 Future Generali India Life Insurance Company Limited Life Insurance 1014 Aviva Life Insurance Company India Limited Life Insurance 991 Shriram Life Insurance Company Ltd. Life Insurance 982 Exide Life Insurance Company Limited Life Insurance 980 Edelweiss Tokio Life Insurance Life Insurance 945 Future Generali India Insurance Company limited Non Life Insurance 899 Acko General Insurance Limited Non Life Insurance 666 Shriram General Insurance Co. LTD. Non Life Insurance 553 Liberty General Insurance Limited Non Life Insurance 513 IDBI Federal Life Insurance Co Ltd Life Insurance 485 Zurich Kotak General Insurance Company (India) Ltd Non Life Insurance 404 Magma HDI General Insurance Co Ltd Non Life Insurance 380 Export Credit Guarantee Corporation of India Ltd Non Life Insurance 342 Bandhan Life Insurance Limited Life Insurance 333 Pramerica Life Insurance Limited Life Insurance 295 Bharti AXA General Insurance Company Limited Non Life Insurance 189 Navi General Insurance Limited Non Life Insurance 184 Zuno General Insurance Ltd Non Life Insurance 140 Raheja QBE General Insurance Company Limited Non Life Insurance 116Reliance Health Insurance Limited Non Life Insurance 81 Sahara India Life Insurance Co. Ltd. Life Insurance 53 TOTAL 202640