Kathmandu. The trend of selling life insurance policies by giving false information is increasing in India. In the life insurance sector, the number of policies sold by giving false information increased by 14.3 percent to 26,667 in the fiscal year 2025. It was 23,335 in the previous fiscal year 2024.
According to the Insurance Regulatory and Development Authority of India (IRDAI), there has been a slight decrease in the total number of complaints registered in the life insurance sector. In the fiscal year 2024, 120,726 complaints were registered, which has come down to 120,429 in the fiscal year 2025.
The insurance regulator has expressed concern over policies that sell misinformation in India’s insurance sector. The regulator has directed insurers to analyse the root causes and identify the underlying causes to address the issue.
The regulator has advised insurers to implement measures such as evaluating product suitability, implementing distribution channel specific controls and creating a structured plan to address complaints of misinformation selling, including periodic root cause analysis. In the fiscal year 2025, complaints of mis-selling of life insurance by providing false information increased to 22.14 percent of the total complaints.
The insurance regulator of India said that 64 per cent of the total complaints registered on the insurance business on the Bima Bharosa portal are related to policy services and unfair business practices. ’
The total number of complaints registered on the Jeevan Bharosa portal has increased from 2,13,739 to 2,57,790. The number of complaints in both non-life and life insurance cases increased by 47.44 per cent from 93,160 to 137,361.
