Lower insurance complaints, happier customers?

Any company or industry which has a large number of customers would automatically face complaints. If a company says they don’t have any complaints it means that they don’t have any customers! It’s the same case with insurance companies and insurance sector also.

Over the years we have heard and met lot of customers  who complain that the agent and the insurance company has not paid them any claims and they have lost their premium amount. We have always tried to understand such cases and have found out that in most of these cases, it is wrong selling that is responsible and lack of awareness on the part of the customers about the coverage of the policies they have purchased.

As per the report released jointly by Insurance Regulatory and Development Authority (IRDA) and Consumer Affairs Department, number of complaints dropped to 63,335 in 2013-14 from 1,86,615 in 2009-10 in the general insurance sector. Indicating an improvement in customer service by non-life insurers and stringent regulatory regime, the number of customer complaints in general insurance has recorded a whooping drop of 66 per cent, according to the report.

In motor insurance segment which comprises of the largest portfolio for non-life insurers, it fell to 28,000 from 85,000 in last five years. While claim-related complaints comprised 23.5 per cent under the motor insurance segment, policy-related complaints comprised 18.6 per cent in 2013-14. In its bid to supervise complaints directly under the motor insurance segment, IRDA has launched integrated grievance management system (IGMS), which enables policyholders to lodge complaints directly with the regulator.

In the health insurance segment, the number of customer complaints has fallen to 23,500 in 2013-14 from 69,000 five years ago in spite of the compound annual growth of 25%. Direct NEFT transfer of claim funds to the customer is also quoted as another reason for reduction in complaints in the health insurance sector.