New Delhi, Oct. 18 -- The debate over the Insurance Regulatory and Development Authority of India's (Irdai) proposed distribution reforms has centred on whether the changes could push agents and point-of-sales persons (POSPs) out of the business, hurting insurance penetration and post-sales services. But for policyholders, a more immediate question is whether their insurer will pay a valid claim, and whether they can get a fair hearing when it does.

The numbers suggest there is considerable room for improvement. Health insurance complaints to the Insurance Ombudsman rose 263% over five years, from fiscal year 2021 (FY21) to FY25. Life insurance complaints declined 5% over the same period, though they rose 15% between FY24 and FY25. The n...