Bengaluru: Insurance-related grievances dominate consumer complaints in Karnataka, accounting for 74,117 cases filed across state and district commissions from 1989 to Feb 2025. This represents approximately 23% of all consumer complaints in the state. Of these, 67,555 cases have been disposed of, leaving 6,562 pending.
The banking and private housing sectors are other significant areas of consumer dissatisfaction. Banking services rank second with 35,823 cases filed, of which 34,090 have been resolved and 1,733 remain pending. The private housing sector follows with 35,079 total complaints, with 31,884 disposed of and 3,195 pending resolutions.
Although this isn't surprising given that these are the sectors that have become essential to people, as both consumers and lawyers point out, the high number of insurance-related disputes highlights ongoing challenges in claim settlements and policy interpretations, while poor services from banks and the private housing sector are other pain points.
"In financial services, especially with banks and NBFCs (non-banking financial companies), customers frequently fall prey to misleading advertisements and are often unaware of loan terms due to lack of proper disclosure. This has resulted in a surge of complaints related to loans, insurance, and related services. Banks now act as corporate agents for insurance companies. Yet, many claims are repudiated on technical grounds, pushing more consumers to seek redressal," Syed Anser Kaleem, president, 1st additional consumer disputes redressal commission of Bengaluru Urban district, told TOI.

Srikant Parthasarathy, an advocate at the Supreme Court, said the apex court has categorically held that consumer disputes and applications to the consumer courts will survive irrespective of the recourse that is available under Real Estate (Regulation and Development) Act (Rera).
"...Now, a lot of people file consumer cases against builders and have secured judgments against these builders. Builders often skip consumer court hearings, later claiming they weren't heard to delay the execution of orders. This tactic frustrates buyers, who must bear legal costs and also navigate the execution process. In joint purchases, lack of consensus among buyers or parallel Rera cases further weakens their stance. Disunity among consumers allows builders to exploit the system and avoid accountability," he said.
Defective household goods
The miscellaneous category, encompassing various unclassified complaints, shows a substantial volume with more than 1.2 lakh cases filed. Of these, 3,045 cases are pending.
Defective household goods accounted for 11,439 cases, with 10,932 resolved and 507 pending. Utility services also showed notable numbers, with electricity-related disputes totalling 9,099 cases (8,852 resolved and 247 pending) and telecom services generating 7,210 complaints (7,150 resolved and 60 pending).
The medical sector saw 4,569 cases filed across both commission levels, with 4,059 resolved and 510 pending. Educational institutions faced 4,029 complaints, with 3,907 cases disposed of and 122 pending.
Road transport services generated 3,829 complaints, with nearly all (3,777) resolved. Railway services had 1,218 cases filed with 1,163 disposed of, while airlines faced 1,590 complaints with 1,509 resolved.
E-commerce a new entrant
Notably, e-commerce, a relatively new category in consumer disputes, shows a minimal but growing presence with 109 cases filed and only 22 resolved, leaving 87 pending — suggesting this sector may require focused attention as digital commerce expands.
"...With the rise of e-commerce, the Consumer Protection Act-2019 introduced much-needed provisions to address online consumer issues. Platforms like Amazon and Flipkart are now accountable. The Act ensures speedy and affordable justice, with over 90% of orders from our commission being complied with," Kaleem added.