Irdai Asks Insurers To Sharpen Service Quality, Fix Gaps In Grievance Handling

In a recent statement, the Insurance Regulatory Development Authority of India (Irdai) called on insurers to step up their customer-service game and mend the weak spots in how complaints are addressed. The regulator’s remarks came after a detailed interaction with senior grievance officers and customer-experience heads from several companies, where it pressed for a more grounded, human approach to policy-holders’ problems.

A Reminder That Customers Deserve Clearer Answers

The regulator noted that many of the issues reaching its doorstep stem from confusion that could easily be avoided. Many policy-holders still find themselves puzzled by the way insurance documents are written or left guessing about what exactly a claim officer needs from them. Add to that the long waits at customer desks, and the experience quickly turns tiring. During the meeting, Irdai pointed out that these are not minor irritants; they are long-standing problems that deserve the industry’s full attention.

The regulator also reminded insurers of something most customers quietly expect but rarely receive: plain talk. When a person signs up for a policy, they shouldn’t have to decode technical language or keep calling for basic clarifications. What they need is a clear explanation at the start and straightforward guidance whenever a claim comes up.

A clear explanation at the point of sale, a straightforward claims checklist, and timely communication can spare customers a great deal of frustration. Irdai stressed that these are basic courtesies, not add-ons.

Grievance Teams Told To Take Stronger Ownership

A large part of the discussion revolved around grievance redressal, an area where policyholders often feel unheard. Irdai made it clear that the people handling complaints are not doing routine desk jobs; they are, in many ways, the face of the insurance company. When someone raises an issue and hears nothing back for days, or keeps waiting without any clarity, it reflects poorly not just on one insurer but on the entire industry.

The regulator asked companies to keep a closer watch on how grievances move through their system. Complaints shouldn’t sit unattended, nor should customers be left wondering whom to contact next. Companies were told to give timely updates, close matters without unnecessary delay, and spell out the route for escalation so that customers know exactly where to turn if something stalls. The point, Irdai said, is not merely to clear files but to resolve the problem in a way that reassures the policyholder.

What Policyholders May Expect If Insurers Act On This

Should the industry take these directions seriously, customers could see subtle but meaningful changes, simpler documents, fewer back-and-forth calls, and quicker answers when something goes wrong with a claim. Better-trained front-line staff and more responsive grievance cells could reduce the exhausting cycle many policy-holders currently go through.

For insurers, the call is a timely reminder that policy sales alone do not build loyalty. What happens after the sale, when someone needs help or files a claim, shapes the customer’s perception far more deeply. Companies that invest in a cleaner, more transparent service process stand to gain trust at a time when consumers increasingly compare experiences before choosing a provider.

Irdai’s nudge signals that the regulator expects the industry to evolve, not by rolling out flashy products, but by improving the everyday interactions that determine whether a customer feels protected or abandoned. If insurers rise to the challenge, policy-holders may finally find insurance less intimidating and more dependable, the way it was meant to be.