Complaints related to health and motor insurance in Madhya Pradesh have risen sharply, with cases filed before the Insurance Ombudsman increasing by 631.71% in five years, according to government data presented in the Lok Sabha.
Consumers have alleged that insurers promise cashless treatment and other benefits while selling policies but later cite complicated terms and conditions when claims are filed. Many policyholders, frustrated after repeated visits to insurance offices, are now approaching the Ombudsman and courts to recover their money.
Complaints rise from 369 to 2,700
The number of complaints filed with the Insurance Ombudsman in Madhya Pradesh has increased significantly over the past five years.
In 2021-22, 369 complaints related to claim disputes and rejections were registered in the state. The number rose to 913 in 2022-23, before increasing sharply to 2,405 in 2023-24.
A total of 2,420 complaints were recorded in 2024-25. The figure reached a record 2,700 in 2025-26, marking a 631.71% rise from the 2021-22 level.
More policyholders approach courts
Consumers are also increasingly taking insurance disputes to courts and consumer forums after their claims are rejected by insurers.
Across India, the number of such cases reaching courts rose from 19,025 in 2021-22 to 46,122 in 2025-26.
In Madhya Pradesh, the Insurance Ombudsman disposed of 1,745 cases in favour of consumers this year.
The number of court decisions favouring consumers has also increased over the past five years. The figures stood at 10,871, 13,442, 22,015, 23,765 and 25,418, respectively.
Maharashtra tops list, MP third
Maharashtra recorded the highest number of complaints over rejected insurance claims in 2025-26, with 7,333 cases.
Gujarat ranked second with 4,181 complaints, while Madhya Pradesh was third with 2,700 cases.
Uttar Pradesh recorded 2,587 complaints, followed by Kerala with 2,561 and Tamil Nadu with 2,371.
The figures highlight the growing number of disputes between policyholders and insurance companies across the country, particularly over claim rejections.
