Redressal Mechanism Regarding Complaints on Insurance Products: Efficient or not Efficient in India

Abstract

This paper examines the effectiveness of grievance redressal mechanisms for complaints related to insurance in India, looking at the challenges that consumers face and where improvement can be made. A mixed-methods approach combining qualitative techniques, including in-depth interviews and case studies, with quantitative surveys is used to examine the experiences of consumers with the different redressal forums, such as the IRDAI, the Insurance Ombudsman, and company grievance cells. The most common complaint was found to be the rejection of claims, across life, health, and general insurance, while the most efficient were company grievance cells in redressing grievances. IRDAI and the Ombudsman, however, witnessed considerable delay. The scores of customer satisfaction reflected a higher degree of satisfaction with the company grievance cells, particularly on timeliness and effectiveness. The study also pinpoints significant challenges such as awareness, complexity in documentation, and delayed resolution. The hypothesis test validates that customer satisfaction significantly depends on the efficiency of grievance redressal mechanisms. Finally, this study recommends improvements in transparency, communication, and procedural efficiency in order to make the grievance redressal system more effective in the Indian insurance sector.