What Happens After You File a Mis-Selling Complaint Against Your Insurance Provider?

 You’ve been paying premiums for months—maybe years—trusting that your insurance policy will protect you when it matters most. But when you finally read the fine print or try to file a claim, reality hits: the policy isn’t what you were promised. This is the harsh world of the mis-selling of insurance policies, and it’s more common than most people think.

So what happens when you decide to take action and file a complaint about insurancecompany for misleading you? Let’s break it down.

1. What exactly is mis-selling?

Mis-selling in an insurance policy refers to the unethical practice where an insurance product is sold to a customer by misrepresenting its terms, benefits, or suitability. This could involve hiding exclusions, exaggerating returns, or selling policies that don’t meet the actual needs of the buyer.

Often driven by sales targets and commissions, mis-selling leads to customers holding policies they don’t understand or benefit from, only to discover the mismatch when a delayin claim process or claim rejection.

But what does it look like in real life? Let us see the case of Hemant Mirchandani v. M/S TataAig General Insurance Company

2. Case study
The Case:
 Hemant Mirchandani filed a complaint against Tata AIG General Insurance Company for mis-selling of insurance policies. His father was lured by an agent, Mr. Moolchandani, into buying three policies worth ₹50,000 each, with a false promise of ₹2,65,469 return. Despite receiving the policies in July 2011, the promised return never came. Multiple complaints were made to the company and IRDA, but no proper investigation report was ever shared. After his father’s death, Hemant pursued cancellation and refund, which the company denied, citing expiry of the 15-day free-look period. 

The Argument:
● Complainant's Argument: Hemant argued that the insurance was mis-sold through fraudulent means and that the promised returns were never delivered. He emphasised the agent’s misleading conduct and the company's repeated but hollow assurances of investigating the issue.

● Opposite Party (Tata AIG)'s Argument: The insurance company claimed that the policies were issued properly, and the cancellation request came after the free-look period, so cancellation wasn’t possible.


The Verdict:

The Forum held Tata AIG guilty of deficiency in service and unfair trade practice, noting the lack of a proper investigation and mechanical handling of the complaint.
If this sounds familiar, what can you do? Read along to find out.

3. The Step-by-Step of Fighting Mis-selling

Step 1: Filing the Complaint

Start by taking the complaint to the insurer directly. It is required by IRDAI (Insurance Regulatory and Development Authority of India) for insurers to have a grievance redressal system for the policyholders. You can submit your complaint via:
● Email or online grievance portal
● In-person or postal submission
● IRDAI’s Integrated Grievance Management System (IGMS)
● Or to a Subject Matter Expert 

Pro Tip: Be clear, specific, and attach all evidence—brochures, emails, agent voice notes, anything that shows misrepresentation.

Step 2: Brace for Bureaucracy

Once you’ve filed, the insurance company must respond within 15 days. But many policyholders face a delay in the claim process, with insurers buying time, asking repetitive questions, or just going silent.
This waiting game is designed to tire you out. Don’t give in

Step 3: Escalate the Matter

If your complaint is unresolved or you get a generic, dismissive response, escalate:
● Insurance Subject Matter Experts: They are the experts who have played the legal game enough times to know all INs and OUTs. When things get tough, they become your shield and voice.
● IRDAI: If the insurer violates norms, you can lodge your complaint with IRDAI directly through their online portal or email.

 Step 4: The Verdict—And What It Means

Outcomes of your complaint could be:
● Full redressal: Policy reversal or refund
● Partial compromise: Some benefits or adjustments
● Rejection: If you lack strong documentation or proof

Here’s the catch: most rejections happen not because the case is weak, but because it’s poorly presented, unless, of course, it is a matter of fraud.

Step 5: The Expert Advantage Insurance law and documentation aren’t everyone’s cup of tea. That’s why more people are turning to professionals who offer claim rejection services and specialise in resolving insurance claim-related issues.
From filing airtight complaints to presenting evidence before the legal system, these experts do the heavy lifting, dramatically improving your odds of a fair outcome.

Final Word

Being mis-sold an insurance policy isn’t just unethical—it’s illegal. If you’ve fallen victim, don’t let intimidation or red tape silence you.

Take action, document everything, and if needed, call in the experts.

You paid for protection. You deserve what was promised.