Banking and Insurance Disputes Top Consumer Complaints in Karnataka
Banking and insurance disputes emerged as the leading category of consumer complaints in Karnataka between March 2025 and March 2026, with local residents in Jayanagar, Bengaluru, among those struggling to resolve claims. According to data from the Karnataka State Consumer Disputes Redressal Commission (KSCDRC), cases against banking institutions and insurance companies rose steadily over the one-year period.
Statewide, cases against banks increased from 35,954 in March 2025 to 37,897 in March 2026. Insurance-related complaints saw a similar upward trend, rising from 74,364 to 77,397 during the same timeframe.
A 63-year-old resident of Jayanagar shared his struggle after purchasing health insurance to avoid financial strain during medical emergencies. When his wife underwent surgery, the insurer rejected the claim, citing policy clauses that he said were never adequately explained. Despite paying nearly Rs 2-3 lakh in premiums over the years and securing a consumer court order in his favour, the resident has still not received the money.
Another resident, a 53-year-old from Mysuru Road, experienced a similar denial after undergoing surgery for a fracture. The insurance company rejected his claim on the grounds that they do not cover minor fractures.
In banking-related cases, Belagavi topped the state with 13,240 cases filed and 12,601 disposed of. Mysuru followed with 2,009 cases filed and 1,993 disposed of, while Dharwad recorded 1,361 cases filed and 1,238 disposed of. For the insurance segment, Haveri led with 5,330 cases filed and 5,300 disposed of, followed by Dharwad and Gadag.
Consumer rights activists attribute these rising disputes to poor communication at the time of sale. YG Muralidharan, founding member of the Consumer Rights Education and Awareness Trust (CREAT), stated that consumers are often not informed about exclusions and cancellation clauses until a dispute arises. He called for stronger outreach efforts by regulators.
KSCDRC chairman Shivashankare Gowda noted that claim rejections and delays frequently occur on technical grounds, and urged consumers to fully understand all policy conditions.
