Consumer Grievance Redress in Indian Insurance Markets*

We present results from a first-ever representative survey of five major Indian states to measure consumer grievances in Indian insurance markets. We document the lifecycle of the grievance redress process for life, health, vehicle and agricultural insurance products. Despite high resolution rates by insurance companies, consumers choose not to complain for an array of reasons. Insurance consumers prefer exiting insurance products rather than entering the redress process, suggestive of high transaction costs in redressing insurance grievances.