Life insurance in India gained momentum since the entry of private insurance companies. Currently there are 23 life insurance companies that are operational in the country which includes 22 private life insurance companies and LIC of India. Life insurance products that cater to different needs of a customer include plans like Term Insurance Plan, Endowment Plan, Money-back plan, Pension Plan, Unit-linked Insurance Plan (ULIP), Child Plan etc.
All the private and public insurance companies in India are governed by the Insurance Regulatory and Development Authority (IRDA). Each year, IRDA’s grievance cell receives thousands of complaints from customers. Here is a look at all life insurance complaints received during 2009-2010.
Total number of complaints received against life insurance companies was 2,449, out of which 606 complaints were directed against LIC of India and 1,843 against the private insurers.
The insurance authority directs such complaints to a special division of the insurance company for resolution. Respective insurance companies have to take necessary steps to resolve each and every complaint. Post resolution, there were 150 outstanding complaints against LIC and 245 complaints against private insurers (as of March 31, 2009).