The number of complaints as a percentage of new policies sold in FY2019 edged up in the case of state-owned Life Insurance Corporation of India (LIC) but declined for private sector life insurers.
In the case of LIC, the number of complaints increased to 0.48 per cent of new policies sold against 0.36 per cent in FY2018 and 0.15 per cent in FY2017, as per Insurance Regulatory and Development Authority of India’s (IRDAI) annual report for 2018-19.
In the case of private sector life insurers, the number of complaints declined to 0.84 per cent of new policies sold against 1.13 per cent per cent in FY2018 and 1.42 per cent in FY2017.
In FY2019, LIC sold 2.14 crore new policies (against 2.13 crore in FY2018 and 2.01 crore in FY2017). Private life insurers sold 72.54 lakh policies (68.60 lakh in FY2018 and 63.25 lakhs in FY2017).
At the end of March 2019, there were 24 life insurers, including LIC in the public sector and 23 in the private sector.
Unfair business practices
The number of unfair business practices (UFBP) complaints in the case of LIC was unchanged at 0.01 per cent of the new policies sold in FY2019 vis-a-vis the previous year.
The number of unfair business practices (UFBP) complaints in the case of private sector life insurers declined to 0.62 per cent of the new policies sold vis-a-vis 0.75 per cent in the previous year.
General insurance industry
There was a 3 per cent reduction in the number of complaints reported by the general insurance industry at 42,761 in FY2019 against 43,995 in FY2018. There are 27 general insurers in the country, including six in the public sector and 21 in the private sector.
Within the general insurance industry, the public sector general insurers reported a 7 per cent decline in the number of complaints at 20,968 against 22,568 in the previous financial year.
The private sector general insurers reported a 2 per cent increase in the number of complaints at 21,793 against 21,427 in the previous financial year.