Rakshit Financial ServicesInsurance broker · Udaipur

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IRDAI data · FY2024-25

What Happens When an Insurer Says No

If a claim is rejected and the insurer will not move, the Insurance Ombudsman is the next step. It is free, it does not need a lawyer, and an award binds the insurer but not you. This is what actually happened at all 18 centres last year.

Written by Parul Bhargava · Founder and Principal Advisor, advising since 2004

Key takeaways

The three segments

Complaints handled in FY2024-25, how quickly they closed, and who the formal awards favoured.

SegmentComplaintsClosed in 3 monthsFormal awardsAwards for the policyholder
Health insurance37,58579%11,02756%
Life insurance17,33085%5,35441%
General insurance5,38988%1,79051%

Health insurance, by centre

Health is the largest source of insurance complaints in India by a wide margin.

CentreComplaintsClosed in 3 monthsAwardsFor the policyholder
Mumbai5,81048%1,03073%
Pune5,17840%1,05143%
Ahmedabad3,540100%1,79360%
Bhopal3,19174%99863%
Chandigarh2,92394%49754%
Kochi2,29157%95653%
Kolkata2,044100%74526%
Chennai1,86851%56766%
Bengaluru1,72377%48870%
Noida1,601100%69941%
Lucknow1,484100%40054%
Hyderabad1,43299%27174%
Delhi1,418100%18510%
Jaipur1,30094%64356%
Bubaneshwar577100%28966%
Patna529100%23261%
Guwahati36783%15660%
Thane309100%2778%

Life insurance, by centre

CentreComplaintsClosed in 3 monthsAwardsFor the policyholder
Pune2,59728%67050%
Kolkata2,336100%84032%
Delhi1,960100%40113%
Mumbai1,18850%16257%
Lucknow1,178100%29746%
Chandigarh1,16196%42643%
Noida1,067100%34665%
Patna886100%26351%
Bhopal72376%32023%
Bengaluru69481%23068%
Ahmedabad611100%1947%
Chennai58749%27745%
Hyderabad58399%23464%
Bubaneshwar559100%26332%
Jaipur52497%14242%
Kochi32738%20929%
Guwahati26990%7344%
Thane80100%7100%

General insurance, by centre

Motor, fire, marine, liability and the rest.

CentreComplaintsClosed in 3 monthsAwardsFor the policyholder
Lucknow538100%11842%
Jaipur47099%18254%
Chandigarh45699%10866%
Mumbai44371%6268%
Noida422100%14932%
Chennai36046%15152%
Kolkata315100%9914%
Pune31430%8432%
Hyderabad296100%7462%
Delhi289100%5810%
Patna276100%11381%
Kochi25448%13550%
Guwahati22392%12464%
Bubaneshwar215100%13154%
Bengaluru20778%7879%
Ahmedabad163100%8252%
Bhopal13379%4238%
Thane15100%0

How to use the Ombudsman

Complain to the insurer first and keep the acknowledgement. If the reply does not satisfy you, or 30 days pass with no reply, approach the Ombudsman for the centre covering your address, within a year of that reply.

Bring the policy schedule and wording, the claim form, the rejection letter, your correspondence, and the evidence the rejection turns on. Most complaints that fail do so because the wording genuinely excludes the loss, not because the process went wrong.

An award binds the insurer, which must comply within 30 days. It does not bind you. Reject it and your right to a consumer forum or a court survives, which is why trying the Ombudsman first costs you very little.

What the numbers do not say

A low award rate at a centre is not proof of bias. Centres differ in the mix of complaints they receive, and one handling mostly weak claims will issue fewer awards for the complainant however fairly it decides. The spread is worth knowing, not worth building a theory on.

Nor is an award the only good outcome. Many complaints end in a recommendation the insurer accepts, or are withdrawn because the insurer settled once the complaint was filed. Those never appear as awards, and for the policyholder they are wins.

Frequently asked questions

What is the Insurance Ombudsman and what does it cost?

A free adjudication service under the Insurance Ombudsman Rules, 2017, with 18 centres across India. No fee, no lawyer needed. It handles personal lines, group policies issued to sole proprietorships and micro enterprises, and complaints against insurers and their intermediaries.

When can I go to the Ombudsman?

After you have complained to the insurer and either received a reply you do not accept or heard nothing for 30 days. Normally within one year of the insurer's reply. There is a monetary ceiling on the award, so large commercial disputes go elsewhere.

How long does it take?

Faster than most people expect. Across all three segments in FY2024-25 the large majority of disposed cases closed within three months, and several centres closed every case inside that window.

What are my chances?

Of the formal awards issued in FY2024-25, 51% favoured the policyholder, and health did best at 56%. But most complaints never reach an award: they are settled, withdrawn, resolved by recommendation, or ruled outside the remit.

Is the decision binding?

An award binds the insurer, which must comply within 30 days. It does not bind you. Reject it and your right to go to a consumer forum or court survives intact. That asymmetry is why it is worth trying first.

Should I use a broker or go direct?

You can go direct and many people do. An advisor helps before that point: reading the rejection against the wording, assembling the documents, and telling you honestly whether the insurer is right. A complaint that was never going to succeed costs you months.

Source and method. IRDAI Handbook on Indian Insurance Statistics 2024-25, published 3 February 2026. Life: Table 38. General and health: Table 57. Performance of the Offices of Insurance Ombudsman by centre. Study period FY2024-25, prior year FY2023-24. Every centre shown passes two arithmetic checks: the duration bands sum to total disposed, and the disposal methods sum to the same figure. Award rate is awards for the complainant as a share of all awards issued, shown only where a centre issued enough awards for the rate to mean anything.

Related: complaint rates by insurer · claim-settlement ratios · insurer solvency.

Had a claim rejected and not sure whether the insurer is right? Send us the policy and the rejection letter. We will tell you honestly whether it is worth fighting, free, before you spend months on it: request a callback or WhatsApp +91 92514 56334.