On 24 March 2026, the Insurance Regulatory and Development Authority of India (IRDAI) released its annual Integrated Grievance Management System (IGMS) report for FY2025-26—a document that unmasked a brutal truth: 1,81,947 complaints were registered, up from 1,45,518 in FY2024.
The spike isn’t abstract. In FY2025’s grievance chart, filed on 28 February 2025, the number stood at 1,55,398. But by the end of November 2025, IRDAI had logged 1,81,947 grievances, translating to a 25% surge within six months.
Where’s the damage worst? In life insurance, which contributed 87,746 complaints, exactly 48.2% of the total. General insurance followed with 72,431 cases (39.8%), and health insurance brought up the rear with 21,770 complaints (11.9%).
| Segment | Complaints FY25 | Complaints FY26 | % Share FY26 |
|---|---|---|---|
| Life Insurance | 68,322 | 87,746 | 48.2% |
| General Insurance | 61,865 | 39.8% | |
| Health Insurance | 15,211 | 21,770 | 11.9% |
Claim Delays Take the Crown—76,398 Cases Pile Up
Delayed settlements dominate the complaint pile. On 12 January 2026, IRDAI’s Chief Grievance Officer SP Ravi Kumar told reporters in Mumbai, “Claim rejection or delay cases accounted for 76,398 complaints—41.9% of total issues reported.”
His statement came hours after the regulator wrapped its two-day regional review in Pune on 10–11 January 2026, where executives of SBI Life, HDFC Life, Max Life, and ICICI Prudential faced tough questions on settlement timelines.
But delay isn’t uniform. On 22 February 2026, IRDAI published an internal note revealing that 9,842 claims related to term insurance alone sat unresolved beyond the 30-day regulatory deadline set by the IRDAI Claims Settlement Regulations 2023 (effective 1 April 2023).
Policies Expire in Silence—11,294 Cases Cite Lapse Without Notice
Next in the pile: lapse due to non-payment when policyholders weren’t warned. On 18 December 2025, Mumbai Police’s Cyber Cell registered a complaint under Section 420 alleging mass lapse by SBI General Insurance tied to auto-debit failures—473 cases from Mumbai alone.
The real scale emerged when IRDAI cross-examined SBI General’s compliance audit on 3 February 2026. The regulator found 11,294 lapse complaints nationally, with 6,419 in life, 4,576 in health, and 299 in general insurance.
Mis-selling on Two Wheels—Bike Insurance Complaints Soar 30%
Third, malpractices around motor insurance bite hard. A sting operation by The Times of India in Delhi-NCR on 5 March 2026 caught agents of Bajaj Allianz General Insurance inflating premiums for Royal Enfield Classic 350 owners by ₹3,200 without disclosure. The Delhi Police FIR registered on 7 March named three agents, all suspended within 24 hours.
IRDAI’s FY26 data shows bike insurance compliance complaints jumped 30% from 8,912 to 11,587. Car insurance followed with 9,819 complaints—up 12% from 8,765 in FY25.
Health Insurance Denials at Scale—2,340 Polices Rejected for ‘Pre-Existing’ ‘Errors’
In health insurance, claim denials cracked the fourth largest reason. On 15 January 2026, Dr Alok Roy, Chairman of Fortis Healthcare, told a press briefing in Gurgaon that insurers like ICICI Lombard and Aditya Birla Health denied 2,340 claims in Q3 FY26 citing “incomplete pre-existing disease declarations.”
IRDAI’s grievance digest on 20 January 2026 isolated 7,456 health insurance complaints—34.2% were denial or partial denial cases.
Travel Insurance Mess—Non-refunds on Middle-East Trip Cancelllations
And finally, travel insurance cancellations tied to Middle-East tensions last October crippled refunds. On 5 February 2026, the Indian High Commission in Dubai reported 1,890 stranded Indians who bought travel covers from Bajaj Allianz, Tata AIG, and ICICI Lombard—none refunded in 30 days.
IRDAI logged 1,678 travel insurance complaints in FY26—821 related to flight delays, 553 to cancellations.
What happens next? On 21 March 2026, IRDAI Chairman Debasish Panda wrote to all CEOs, setting a May 31, 2026 deadline to clear backlog claims or face penalties under Section 102(6) of the Insurance Act 1938.
Panda said in the letter, “Insurance is a trust business. We will not tolerate delays that erode that trust.” The tone is final. The clock is ticking.
