Irdai, DFS Hold Workshop On Insurance Grievance Redressal

The Insurance Regulatory and Development Authority of India (Irdai), along with the Department of Financial Services (DFS), has held a workshop to review grievance redressal practices in the insurance sector, according to a recent Irdai statement. The discussion centred on the use of the Centralised Public Grievance Redress and Monitoring System (CPGRAMS) and brought together officials from the regulator, the central government, and grievance redressal teams of insurance companies.

The exercise forms part of Irdai’s ongoing effort to tighten oversight of how insurers deal with customer complaints, particularly those that escalate beyond the company level. Officials said the focus was on ensuring that policyholder grievances are not treated as a formality and are resolved in a manner that reflects both accountability and clarity.

Complaints Seen As Early Warning Signals

At the workshop, regulators drew attention to the fact that many complaints arise not from complex policy disputes but from communication gaps and avoidable delays. Insurers were told that simply meeting closure timelines does not amount to effective grievance redressal if the reply fails to answer the policyholder’s concern.

Officials noted that complaints that move repeatedly from one level to another often indicate that the issue was not examined carefully at the first stage. Generic responses and standardised language, they said, tend to aggravate dissatisfaction rather than resolve it.

Participants were encouraged to look at grievance data as an internal feedback mechanism. Repeated complaints on similar issues, officials pointed out, usually highlight weaknesses in claims handling, servicing processes, or product design. Addressing these issues early can help prevent future escalation.

The discussion also turned to how complaints move through CPGRAMS once they are lodged. Officials walked participants through what happens after a grievance is uploaded, how response timelines are monitored, and where cases tend to get stuck. Insurers were told that mismatched or contradictory replies across platforms often trigger further escalation and that responses issued through CPGRAMS should reflect the same position taken internally.

Greater Responsibility For Insurers

Several participants pointed to the way grievance handling is often left to support teams with limited authority. Officials indicated that when the same issues surface repeatedly, it usually reflects decisions taken higher up the chain. In such cases, they said, the matter cannot be resolved without active involvement from senior management.

The need for better-trained grievance teams was flagged during the session, with officials noting that many complaints stall because staff lack clarity or decision-making authority. Repeated lapses, they added, tend to draw closer attention from the regulator.

The regulator reiterated that grievance redressal is a key component of policyholder protection. Poor handling of complaints, officials said, affects not only individual customers but also overall confidence in the insurance sector, especially at a time when efforts are underway to expand insurance coverage.

Coordination With Government Platforms

The workshop also examined coordination between insurers and public grievance platforms such as CPGRAMS. Much of the conversation was around how the same complaint ends up moving between platforms. Officials said policyholders should not have to chase the same issue across different channels, and that better coordination would reduce repeat filings.

Grievance officers spoke about day-to-day problems they run into, from waiting on third-party administrators to sorting out issues tied to agents and intermediaries. Officials said these situations rarely fit standard replies and need to be handled on a case-by-case basis.

The session concluded with Irdai and DFS officials stating that engagement with insurers on grievance redressal standards would continue. Complaint handling practices, they said, will remain under close watch as part of the regulator’s broader effort to improve service quality and protect policyholder interests.