Health Cover Drives Sharp Rise in Insurance Complaints in India

Health insurance is emerging as the leading source of policyholder grievances in India, with complaint filings rising sharply even though the segment represents a comparatively small slice of total industry premiums. The trend points to persistent friction between customers and insurers over issues that commonly arise in health cover, such as claim rejections and deductions, delays in settlement, disputes over cashless treatment at hospitals, and confusion around policy terms and exclusions. Rapid growth in health-insurance uptake, rising medical costs and greater consumer awareness of their rights have all contributed to the increase in complaints. The disproportionate share of grievances relative to premiums underscores the operational and trust challenges facing health insurers as demand expands. It also helps explain why the regulator has intensified its focus on conduct, claims handling and policyholder outcomes across the sector. For consumers, the pattern is a reminder to scrutinise policy wording, waiting periods and network-hospital arrangements before buying cover. For insurers, the surge signals a need to improve transparency, streamline claims and strengthen customer service to retain confidence in a fast-growing but complaint-prone line of business.