Customer Grievances of Health, Motor and Others in the Indian Insurance Industry – A Comparative Study

Abstract

The insurance industry is one of the noticeable industries in India and it plays a vibrant task in the process of building the nation and enhancement of social security. During the year 2016, the insurance density was USD 59.7. It is growing at 15-20 percentage and it contributes approximately 4 percentage of the GDP. At the end of March 2017, there are 57 insurers, in which 24 are Life Insurance Companies, 31 General Insurance Companies and two are Re-Insurers. Among 29 General insurers functioning in India, 4 are Public Sector insurers, 17 are Private insurers, 2 specialized insurers and 6 are insurers exclusively doing health insurance segments.  The four public sector players contribute 47 percentage to the industry and the outstanding part is covered by the 17 private sector companies and 2 specialized insurers in 2016-17. The Motor Insurance carry on with the largest general insurance segment with a share of 39.22 percentage. Health segment have a share of 26.95 percentage and other segment contribute 33.83 percentage. Customer satisfaction and customer retention are the crucial and critical aim of every service focused industry. Like life insurance, general insurance industry is also not free from customer dissatisfaction and grievances, which may be due to the unethical practices of the insurers or lack of awareness on the part of the Customers to protect their rights. In order to reduce the Grievances, the authorities should firstly find out and analyse the most repeated Grievances and create and execute a well-equipped Customer Relationship Management (CRM) and Grievance Redressal policy will help the companies to multiple the satisfaction and loyalty of customers more than before. This study analyse the Customer Grievances of Motor, Health and Other General Insurance and its grievance classification.