In what can be seen as an improvement in business practices of insurance companies, the number of mis-selling complaints in the sale of insurance are showing a downward trend.

The number of the complaints has come down to 23,110 in 2021-22 from 25,482 in 2020-21. The incidence of mis-selling complaints per 10,000 policies sold has also reduced over the years as per the latest data available with Insurance Regulatory and Development Authority of India (IRDAI).

The complaints being disposed in the favour of the complainant has increased from 24 per cent in 2020-21 to 27 per cent over in 2021-22.

“Due to effective supervision and efforts of the regulator the overall number of Unfair Business Practices (UFBP) complaints registered against private sector life insurers have reduced by about 17 per cent in 2021-22 from previous year and the ratio of UFBP complaints to new polices sold remained at 0.30 per cent,’’ IRDAI said.

In order to ensure that all the complaints under mis-selling and spurious calls are handled as per the laid down policy of the insurance company, the regulator had asked all the life insurers to draw out a company specific policy on handling mis-selling complaints and also a company specific policy on handling spurious calls complaints.

IRDAI has been continuously engaged in various insurance awareness campaigns with the aim of equipping the existing and the prospective policyholders with reasonable understanding of their risk coverage needs and for choosing insurance products suitable to meet those needs.

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