Banking and insurance disputes rise in Karnataka as Jayanagar resident faces delays

By Editorial·8 June 2026·1 min read

A photorealistic wide shot of a concerned 63-year-old South Indian man sitting at a wooden table in his home in Jayanaga...

Banking and insurance disputes have emerged as the leading source of consumer grievances in Karnataka, according to data from the Karnataka State Consumer Disputes Redressal Commission (KSCDRC). The rise in complaints has hit local communities, with a 63-year-old resident of Jayanagar among those struggling to secure payouts even after winning favorable rulings in consumer court.

According to the KSCDRC, cases against banking institutions in the state increased from 35,954 in March 2025 to 37,897 in March 2026. During the same period, insurance-related disputes rose from 74,364 to 77,397.

The 63-year-old Jayanagar resident shared that he and his wife bought health insurance to ensure financial independence during medical emergencies. However, after his wife underwent surgery, the insurer rejected their claim by citing policy clauses that had not been explained to them.

Despite paying nearly Rs 2-3 lakh in premiums over the years, the Jayanagar resident had to cover the surgical expenses out of pocket. He noted that they have still not received the money, despite securing a consumer court order in their favour.

Similarly, a 53-year-old resident of Mysuru Road reported that an insurance company denied his claim for fracture surgery, claiming the policy did not cover minor fractures.

In the banking sector, Belagavi recorded the highest number of disputes with 13,240 cases filed and 12,601 disposed of. Mysuru followed with 2,009 cases filed and 1,993 disposed, while Dharwad recorded 1,361 cases filed and 1,238 disposed of.

For insurance complaints, Haveri led the state with 5,330 cases filed and 5,300 disposed of. Dharwad followed with 3,567 cases filed and 3,397 disposed, and Gadag recorded 2,728 cases filed and 2,705 disposed of.

YG Muralidharan, a founding member of the Consumer Rights Education and Awareness Trust (CREAT), attributed these disputes to a lack of clear communication during sales. He stated that consumers are regularly left uninformed about exclusions and cancellation clauses until a dispute arises.

KSCDRC chairman Shivashankare Gowda added that claim rejections and delays frequently occur on technical grounds, and he urged consumers to thoroughly understand all policy conditions.