Over 50% Drop in Life Insurance Grievances Signals Stronger Customer Trust

June 9, 2026 Bilkul Bazaar

Bilkul Bazaar

Over 50% Drop in Life Insurance Grievances Signals Stronger Customer Trust

Ahmedabad | 09 June 2026

India’s life insurance industry has recorded a significant structural improvement in customer experience, with grievances declining by over 50% in the past decade, according to the IRDAI Annual Report for FY2024. Likewise, in FY2025, less than 1% of the grievances registered on the Bima Bharosa portal during the year were pending.

The performance reflects the industry’s growing maturity. Even as the industry has expanded rapidly in scale and reach with the number of policies in force increasing to 292 lakh in FY24, grievance volumes have reduced sharply from 2.79 lakh to 1.23 lakh through the decade.

Key indicators highlight the shift:

Grievances per 10,000 policies fell from 108 in FY15 to 42 in FY24
Complaint ratio declined from 1.08% to 0.42% over the same period

The improvement reflects systemic transformation across technology, governance and customer-centric regulations. Digital onboarding, e-KYC, Aadhaar authentication and real-time validation have reduced errors at inception, while strengthened oversight and AI-driven monitoring have enhanced sales quality and reduced disputes.

Regulatory measures under Protection of Policyholders’ Interests (PPHI) have also accelerated service delivery:

Claim settlement timelines reduced from 30 to 15 days
Investigation timelines reduced from 90 to 45 days

The industry continues to expand access while improving service quality. Life insurance today accounts for over 80% of India’s total insurance premium, underscoring its critical role in financial protection.

With over Rs 24.37 lakh crore invested in government securities, the sector also plays a vital role in supporting long-term infrastructure and economic stability.

As India progresses towards its vision of “Insurance for All by 2047”, the focus remains on strengthening trust through better governance, faster service, and improved customer engagement.