Insurance Samadhan partners with Jaagruk Bharat to curb insurance mis-selling

In a move aimed at strengthening consumer protection and promoting transparency in the insurance industry, Insurance Samadhan, a leading grievance redressal platform, has partnered with Jaagruk Bharat, a digital awareness initiative, to tackle the growing menace of insurance mis-selling.

The collaboration seeks to educate policyholders about deceptive sales practices and help them make informed insurance decisions. Through digital campaigns, educational videos, and interactive content, the two organisations plan to raise awareness about red flags in policy purchases, highlight consumer rights, and explain grievance redressal mechanisms.

While Jaagruk Bharat will leverage its vast digital audience across social media and online platforms, Insurance Samadhan will provide domain expertise, real-life case insights, and data-driven trends to ensure the content is practical, accurate, and actionable.

“Partnering with Jaagruk Bharat allows us to reach citizens at scale and bridge the knowledge gap that leads to mis-selling. Together, we aim to make insurance simpler, transparent, and more trustworthy,” said Shilpa Arora, Co-founder and COO of Insurance Samadhan.

Echoing her view, Abhishek Goel, Co-founder of Jaagruk Bharat, added, “This collaboration is about standing by the consumer and ensuring that help is accessible and reliable. We want to empower citizens with knowledge before they buy, not after they regret.”

A growing problem

Data from Insurance Samadhan’s Q2 2025 Trends Report showed a worrying picture. Complaints related to insurance products almost doubled in the second quarter of 2025 compared to the first — jumping from 684 in Q1 to 974 in Q2, a 45% increase. The total value of contested claims also surged over 43%, from Rs 83.5 crore to Rs 119.5 crore.

Mis-selling remains the primary driver of these disputes, with such complaints up 11.2% year-on-year. Health insurance accounted for a staggering 68% of all grievances, followed by life insurance (25.5%) and general insurance (6.9%). Endowment plans topped the list of mis-sold products, often leaving customers with disappointing returns or losses.

Demographically, the 31–40 age group formed the largest segment of complainants, while Uttar Pradesh led with 16% of total cases — underscoring how widespread the issue has become.

Industry-wide red flags

The Insurance Regulatory and Development Authority of India (IRDAI) reported a similar trend on its Bima Bharosa portal, logging 2.15 lakh grievances in FY 2023–24. Meanwhile, the Council for Insurance Ombudsmen received 52,575 complaints, up 21.7%, largely from health insurance policyholders.

Experts attribute this to high commission structures, which can absorb up to 65% of first-year premiums, pushing agents and banks to aggressively sell unsuitable, investment-linked policies. A study by 1 Finance Magazine revealed that India’s top 15 banks earned ₹21,773 crore in insurance commissions in FY24, with HDFC Bank (₹6,467 crore) and SBI (₹3,893 crore) topping the list.

The fallout is significant — nearly 43% of benefits paid by insurers come from surrendered or lapsed policies, and only 51% of policies survive beyond five years.

Restoring trust through awareness

The Insurance Samadhan–Jaagruk Bharat partnership aims to tackle this systemic issue at its root: lack of awareness. By empowering policyholders with knowledge, the alliance hopes to reduce grievances, encourage informed decision-making, and rebuild confidence in the insurance system.

As Arora summed it up, “Financial literacy is the first line of defence against mis-selling. Awareness is protection.”