India: Insurance Complaints Surge 45% in Q2 2025, Mis-selling and Claim Disputes Lead the List

New Delhi (CNBC) – Complaints related to insurance nearly doubled in the second half of 2025 compared to the first, according to the Q2 2025 Trends Report released by Insurance Samadhan, a privately run grievance redressal platform. The report revealed that the number of complaints rose from 684 in the first quarter to 974 in the second — a 45 percent increase. The total value of contested claims also jumped sharply from ₹83.5 crore to ₹119.5 crore, marking a rise of over 43 per cent.

Mis-selling and claim disputes emerged as the most common issues faced by policyholders. Complaints about mis-selling of insurance products grew by 11.2 per cent compared to the same period last year, while the value of such disputes rose by nearly 10 per cent. Health insurance accounted for the largest share of grievances, at 68 percent, followed by life insurance at 25.5 percent and general insurance at 6.9 percent.

Endowment policies were identified as the most mis-sold product category, often exposing customers to penalties, low returns, and capital loss. Policyholders aged between 31 and 40 were the most active in filing complaints, with Uttar Pradesh recording the highest proportion at 16 percent of the total cases.

Experts suggest that rising mis-selling complaints stem from high commission structures and intense sales pressure on agents. Data from the Insurance Regulatory and Development Authority of India (IRDAI) for 2022–23 show that nearly one in five complaints against life insurers were related to mis-selling.