A growing number of Indian policyholders are discovering that they may have been victims of mis-sold insurance—policies they didn’t fully understand, didn’t need, or were tricked into buying. Whether it’s life insurance, health cover, or bundled policies tied to loans or credit cards, mis-selling continues to be a widespread concern.If you suspect you were misled into buying an insurance policy, don’t panic. Here’s a practical, step-by-step guide to filing a complaint and taking back control.What Is Mis Sold Insurance?Mis sold insurance refers to any insurance policy sold under misleading, incomplete, or false information. This can include:Being sold a policy without full disclosure of terms and conditions Not being informed about exclusions, lock-ins, or waiting periods Being promised high or guaranteed returns that don't exist. Having insurance added unknowingly while taking a loan or credit card.Most cases of mis-selling in India occur through overzealous agents, third-party banking channels (bancassurance), or misleading advertisements.Step 1: Review Your Policy and Collect EvidenceBefore filing a complaint, gather all the documentation that proves your case:Original policy documents or bond Proposal form and application papersEmail or SMS communication from the insurer or agent Bank statements or premium receiptsWritten notes of any verbal promises or misleading claimsThe more details you provide, the easier it will be to prove that you were misled.Step 2: Raise a Complaint with the Insurance CompanyStart by complaining directly to the insurer’s grievance redressal cell. Here’s how: Submit a formal written complaint via their website or grievance portalEmail the grievance officer (contact details are on the insurer’s official site) Visit a branch and submit a signed complaint letterMake sure you get a written acknowledgment or complaint reference number. Under IRDAI guidelines, insurers must respond within 15 working days.Step 3: Escalate the ComplaintIf the insurer’s reply is unsatisfactory or if there is no response within 15 days, you can escalate it through two official channels:Option 1: IRDAI – Integrated Grievance Management System (IGMS)Website: https://igms.irda.gov.inToll-Free Number: 155255 or 1800 4254 732Submit your complaint and upload supporting documentsOption 2: Insurance OmbudsmanA free, region-based dispute resolution forumYou must first file a complaint with your insurer before contacting the Ombudsman Visit https://cioins.co.in to find your region’s OmbudsmanNote: The Ombudsman’s decision is binding on the insurer but not on the customer. You still retain the right to take legal action if needed.Why Is Mis Sold Insurance a Growing Problem in India?Reports from the Insurance Regulatory and Development Authority of India (IRDAI) indicate thousands of mis-selling complaints every year. Many victims are:Senior citizens lured by false promises of guaranteed returns First-time buyers unaware of policy clausesCustomers misled by digital ads or bank agentsThe pressure to meet sales targets often leads to aggressive and unethical selling practices, making consumer awareness more important than ever.Final Thoughts: Know Your Rights, Take ActionIf you think you’ve been sold the wrong insurance product, don’t stay silent. Under Indian law, you are protected. Make use of the free-look period—a window of 15 days (30 days for online/distance sales) to cancel any policy you’re unsure about.Quick Tips:Ask questions before signing anythingRead the policy document carefully—not just the brochureKeep all communication and receipts File your complaint without delayShare Your ExperienceHave you been a victim of mis sold insurance in India?Tell us your story in the comments—or contact our team to raise awareness and help others avoid the same pitfalls.This article is part of our ongoing consumer protection series. Subscribe to stay informed about your rights in finance, insurance, and more.

The Insurance Regulatory and Development Authority of India (IRDAI) has introduced a draft for a new rule aimed at making insurance claim complaints faster and easier to solve. The draft, called the Internal Insurance Ombudsman Guidelines 2025, was released on July 24, 2025.What’s the Big Change?Under this new rule, every insurance company that has been operating for more than three years must appoint an internal ombudsman. This person will handle customer complaints related to insurance claims up to ₹50 lakh. The goal is to solve problems inside the company quickly so customers don’t have to wait long or go to outside offices or courts.How Will It Work?Each insurance company will have at least one internal ombudsman. If needed, companies can appoint more ombudsmen for different regions to speed things up. These ombudsmen will report directly to the Managing Director (MD) or CEO for daily work, but for important matters, they will be accountable to the company’s Board or a special committee focused on protecting policyholders. This system is meant to keep the ombudsman independent and trustworthy.Why Is This Important?The new rules aim to build trust between customers and insurance companies by making complaint handling quicker and more fair. It will reduce delays in settling claims and avoid long legal battles. Insurance companies will also become more responsible for solving customer problems.Details and FeedbackThe draft includes details like the qualifications, job term, salary, and duties of the internal ombudsman. IRDAI is welcoming suggestions and feedback from the public until 5 PM on August 17, 2025. The draft can be found on IRDAI’s official website.This move is part of IRDAI’s bigger plan to protect insurance policyholders and make the system work better for everyone.

The Insurance Regulatory and Development Authority of India (IRDAI) has issued a crucial public warning regarding a fraudulent website that is impersonating the regulator’s official consumer education portal. The fake website — https://policyholdergov.org — is reportedly misusing IRDAI’s official emblem and logos of government agencies such as the Department of Financial Services, india.gov.in, and the Council of Insurance Ombudsman.According to IRDAI, this fraudulent platform is engaging in unauthorized and deceptive activities, including: Attempting to induce policyholders to make premium payments online. Collecting personal and sensitive data from unsuspecting visitors. The regulator has made it clear that IRDAI does not collect any premium, facilitate claim settlements, or engage in financial transactions through its official websites. The sole purpose of its legitimate portal is to educate policyholders, spread insurance awareness, and guide them on their rights and grievance redressal mechanisms.✅ IRDAI’s only official consumer education website: 👉 https://policyholder.gov.inThe general public is strongly advised to avoid engaging with the fraudulent site and to rely only on official IRDAI portals for accurate and verified information.Cyber frauds in the insurance space are on the rise, and policyholders are urged to stay vigilant, verify URLs carefully, and never share personal or financial information on unverified platforms.⚠️ Disclaimer The information presented in this blog has not been verified by Bimacure. Bimacure does not guarantee the accuracy of the information shared in this blog.