The Insurance Regulatory and Development Authority of India (IRDAI) has declared November 2026 a “Grievance Resolution Month” for the insurance industry, asking insurers to clear pending policyholder complaints and disputes, with a sharp focus on cases that have dragged on for more than a year. The drive was formally launched in Hyderabad on 31 October 2026.
The move comes from a regulator that has made policyholder outcomes a theme since Ajay Seth took charge as IRDAI Chairman, and it runs alongside the Authority’s wider review of distribution costs.
How big is the insurance grievance backlog?
According to IRDAI data, about 2.21 lakh insurance cases were pending before Consumer Commissions and courts as of 31 March 2026, and roughly 72.49% of them had been pending for over a year. Around 11 lakh more cases were reported pending before Motor Accidents Claims Tribunals (MACT).
The regulator said the industry has expanded coverage significantly, but the number of unresolved grievances “remains a concern”. It warned that prolonged pendency causes financial and emotional hardship to policyholders and erodes trust in insurance.
What IRDAI has asked insurers to do
During the month, insurers have been advised to review their pending grievances and disputes and pick out cases that can be resolved early. Specifically, they are expected to:
- Prioritise long-pending cases first.
- Review pending litigation on merit and settle amicably where it is legally and factually sustainable.
- Comply promptly with Insurance Ombudsman awards.
- Expedite grievances pending at any other forum or platform.
- Strengthen litigation management to avoid unnecessary delays.
- Identify recurring causes of grievances and take corrective and preventive steps.
“The measure of success on grievance resolution must not be the number of cases closed alone, but the fairness, quality and sustainability of the resolutions achieved,” Seth said at the launch, adding that the aim is to “create a culture of addressing policyholder grievances proactively”.
Councils and outreach in smaller cities
The Life Insurance Council, the General Insurance Council and the Council for Insurance Ombudsmen have been asked to sensitise member insurers. Insurers and the councils are also expected to publicise the drive at branch level and through digital media so that policyholders know they can use the window.
IRDAI, together with the councils and State-wise Lead Insurers, will run outreach programmes across the country, with special emphasis on Tier-II and Tier-III cities, where access to grievance redressal is more limited. The Hyderabad launch was chaired by Deepak Sood, Member (Non-Life), IRDAI, with Debasish Prusty, Additional Secretary, Department of Financial Services, present.
Digital reporting upgrade for health insurers
Separately, IRDAI has upgraded its Business Analytics Platform (BAP), its portal for regulatory reporting. Health regulatory returns, generation of Unique Identification Numbers (UINs) for new health insurance products, and changes to existing health products now run through a dedicated Health module on BAP, according to an IRDAI circular reported by The Hindu BusinessLine.
Why it matters for the BFSI sector
Health insurance is where customer dissatisfaction runs highest, Seth has said in recent remarks, and the backlog numbers show how much of that friction ends up in courts and tribunals. A time-bound drive that rewards fair settlements over closure counts puts pressure on insurers’ claims and legal teams, and on the data and workflow systems that track complaints end to end.
It also lands as the industry debates IRDAI’s proposed distribution reforms; read our coverage of NBFCs seeking a glide path on insurance commission caps.
Key takeaways
- IRDAI has declared November 2026 Grievance Resolution Month across life and general insurance.
- About 2.21 lakh cases were pending in courts and consumer forums as of March 2026, 72.49% for more than a year, plus around 11 lakh before MACTs.
- Insurers must prioritise old cases, settle viable litigation, and comply quickly with Ombudsman awards.
- Outreach will focus on Tier-II and Tier-III cities.
FAQ
What is IRDAI’s Grievance Resolution Month?
It is an industry-wide drive during November 2026 in which insurers review and resolve pending policyholder grievances and disputes, especially long-pending ones, with support from the insurance councils.
How can policyholders use it?
Policyholders with pending complaints can follow up with their insurer’s grievance cell during the month; insurers and councils have been asked to publicise the drive at branches and online, and IRDAI will hold outreach events, particularly in smaller cities.
Photo: Ajay Seth, Chairman, IRDAI (file photo: Press Information Bureau, GODL-India, via Wikimedia Commons).
