Consumers’ grievance redressal system in the indian life insurance industry - An analysis

Reckoned among the fastest growing industries, the life insurance industry of India has 23 license-holders running their business in this sector. The Life Insurance Corporation of India (LIC), which is the only player in the public sector, contributes over 70% to the business. The remaining area is covered by the 22 private sector companies. Life Insurance Corporation of India (LIC) was established on 1st September, 1959, with the objective of spreading life insurance much more widely and in particularly to the rural areas with a view to reach all insurable persons in the country, providing them adequate financial cover at a reasonable cost. LIC continues to be the dominant life insurer even in the liberalized scenario of Indian insurance and is moving fast on a new growth trajectory surpassing its own past records. The study would provide some insights into the areas, specifically consumer protection and the awareness with reference to the grievances settlement operations of the Life Insurance Industry in India. The study is diagnostic and exploratory in nature and makes use of secondary data. The study finds and concludes that the Life Insurance Industry have significantly improved their performance with regard to redress the grievances of the insurance customers (policyholders).