DFS insurance division ranks second, banking placed sixth in grievance redressal index
The DFS's insurance and banking divisions get over 250,000 grievances annually and their performance is attributed to improved redressal strategies and monthly reviews.
The insurance division and the banking division of the Department of Financial Services (DFS) stayed in the top 10 rankings of departments and ministries addressing grievances and complaints in May.
The insurance division secured second position, while the banking division stood sixth in the Group A category of the Grievance Redressal Assessment and Index for May 2026, the Department of Administrative Reforms and Public Grievances said on Thursday. Group A comprises ministries and departments that receive 500 or more public grievances every month.
According to the DFS, its banking and Insurance divisions together handle more than 250,000 grievances annually. Despite the high volume of complaints, the department has remained among the top 10 in the GRAI rankings since November 2025.
The department attributed the performance to a series of measures aimed at strengthening grievance redressal across the financial sector. Since January 2024, the secretary in the department has reviewed 20 randomly selected grievances every month. The reviews are attended by the complainants as well as the chairpersons, managing directors, chief executive officers and senior officials of the banks and insurance companies concerned to facilitate resolution of complaints.
The department has also organized workshops on effective grievance redressal in collaboration with the Reserve Bank of India, the Insurance Regulatory and Development Authority of India, the Pension Fund Regulatory and Development Authority and public sector banks.
The workshops have focused on identifying the root causes of complaints, improving the quality of grievance resolution and strengthening the capacity of officials handling public complaints.
Insurance plays a crucial role in India’s economy. Beyond offering protection against life, property and casualty risks and serving as a safety net, insurance promotes savings.
10th largest market
India's insurance market was the 10th largest globally by nominal premium volumes in FY25, with a market share of 1.8%, as per a Swiss Re report. Insurance penetration stood at 3.7% of GDP, with life insurance at 2.7% and non-life at 1%, while insurance density (per capita premium) increased marginally to $97.
Indian insurance companies issued 418.4 million policies, collected premiums of ₹11.93 trillion, paid claims of ₹8.36 trillion, and reported assets under management of ₹74.44 trillion as of 31 March 2025.
The increasing role of insurance is also reflected in household financial assets, which include savings, investments and entitlements. The share of insurance and pension funds in household financial assets rose to 29.6% in FY25 from 28.6% in FY19, reflecting growing financial awareness among households.