Mis-selling remains a top concern for Indian insurers as complaints related to unfair business practices rose again in 2025, according to a report by the Insurance Regulatory and Development Authority of India (IRDAI).
In its annual report for 2024–2025, IRDAI noted that grievances categorised under Unfair Business Practices stood at 26,667 last year, 14% higher than the 23,335 recorded in 2024, with the share of total grievances against life insurers rising to 22.14% from 19.33% a year earlier.
Mis-selling generally involves pushing insurance policies onto buyers without clearly explaining key details or ensuring that the product matches their needs. To curb this practice, IRDAI said insurers have been directed to strengthen checks on product suitability, tighten oversight across different distribution channels, and put in place systematic mechanisms to resolve mis-selling-related complaints.