80% of online insurance buyers can’t easily cancel policies: what the latest survey found

You’ve probably seen the ads. “Term insurance starting at ₹490/month!” You click. You enter your name, phone number, date of birth, income. Within seconds, your phone rings. And it doesn’t stop ringing for days.

A nationwide survey by LocalCircles, published on March 20, 2026, puts hard numbers behind what millions of Indian insurance buyers already know from experience: online insurance platforms are full of design tricks meant to push you into buying, and the problem is getting worse.

What the survey found

The survey drew responses from insurance consumers across 309 districts in India. (LocalCircles’ 2024 baseline on the same topic collected over 36,000 responses; the 2026 update builds on that methodology, covering tier 1, tier 2, and rural districts.)

Five findings stand out.

Subscription traps. 80% of users who bought insurance online reported difficulty cancelling their policies. Two years ago, that number was 61%. The 19-percentage-point jump in under two years means the problem is accelerating, not getting fixed.

Nagging. 90% said platforms hit them with persistent prompts and aggressive follow-ups the moment they requested a quote or tried to exit a policy. This was 86% in the previous survey.

Forced action. 85% said platforms demanded unnecessary personal information just to show a quote, then used that data for unsolicited calls and promotions. This jumped 28 percentage points from 57% in the 2024 baseline.

Bait-and-switch pricing. 82% reported that the premium advertised upfront differed from the actual cost at the time of purchase or renewal. The ₹490/month headline number turns into something quite different once you reach the payment page.

Hidden charges. 65% flagged charges that weren’t disclosed until late in the purchase process.

What are dark patterns, exactly?

The Central Consumer Protection Authority (CCPA) defined and prohibited 13 types of dark patterns in its November 30, 2023 notification under the Consumer Protection Act, 2019. These range from false urgency timers to subscription traps to pre-ticked add-ons.

The ones that hit insurance buyers hardest:

Basket sneaking: A rider or add-on (like accidental death benefit or critical illness cover) is pre-ticked during checkout. You didn’t ask for it, but you’re paying for it unless you notice and untick it. If you’re evaluating riders, our guide on term insurance riders breaks down which ones are actually worth considering.

Forced action: You just want a premium quote. The platform insists on your full name, phone number, email, PAN, income, and sometimes even your Aadhaar, before showing any numbers. Once you hand over your details, the calls begin. Our guide on how to get a term insurance quote walks through what information is genuinely needed and what’s a data grab.

Bait and switch: The premium in the ad or the comparison table is for a stripped-down plan (no riders, low cover, annual payment). The moment you customise anything, the price jumps. If a premium looks too good, there’s usually a reason. We’ve written about why dirt-cheap premiums may not be a blessing.

Subscription trap: Cancelling is deliberately harder than buying. Auto-renewal is enabled by default. Cancellation requires calling a number that’s perpetually busy, or filling out forms that lead nowhere.

Nagging: Persistent pop-ups, countdown timers (“Only 2 policies left at this price!”), and guilt-tripping copy when you try to close the tab (“Are you sure you want to leave your family unprotected?”).

The regulatory response

The government and regulators have started responding. Whether that translates into actual consequences for platforms is another question.

The Reserve Bank of India issued draft “Responsible Business Conduct Amendment Directions, 2026” on February 11, targeting deceptive sales practices within financial institutions. These are set to take effect on July 1, 2026.

Days later, Finance Minister Nirmala Sitharaman warned banks against spending “more time selling insurance” than on their core business of deposits and lending. She explicitly called mis-selling of financial products an offence under the Bharatiya Nyaya Sanhita (BNS), according to Business Standard (February 23, 2026).

IRDAI’s own complaint data (cited in Moneylife’s reporting on the LocalCircles survey) showed 25,482 mis-selling complaints in FY 2020-21 and 23,110 in FY 2021-22. Resolution rates favouring consumers improved marginally from 24% to 27%.

Beyond IRDAI, the Insurance Ombudsman handled 15,342 life insurance complaints in FY 2024-25 alone. Here’s what happened to them:

The CCPA’s 2023 guidelines already prohibit all 13 dark pattern types. The issue isn’t a lack of rules; it’s enforcement.

How to protect yourself when buying online

Online insurance buying has real advantages: lower premiums (no agent commission) and the convenience of comparing plans and applying from home. The answer isn’t to avoid buying online entirely. The answer is to know what to watch for.

Go direct where possible. Instead of using a third-party aggregator, buy directly from the insurer’s own website. For any given plan, the premium is the same whether you buy online or offline (insurers file a single rate table per product with IRDAI), but you skip the middleman’s dark patterns. Our comparison of online vs agent vs bank vs broker covers the trade-offs of each channel.

Uncheck every pre-ticked box. Before hitting “Proceed” on any step, scan for pre-selected riders, add-ons, or consent checkboxes. If something was ticked by default, it was ticked for the platform’s benefit, not yours.

Screenshot the advertised premium. If you see a premium in an ad or comparison table, take a screenshot. If the final number at checkout is different, you have evidence of bait-and-switch pricing. You can file a complaint with the CCPA or your state consumer forum under the Consumer Protection Act, 2019.

Know what a fair premium looks like. If you understand the ballpark premium for your age, coverage, and health profile, you’ll spot inflated numbers quickly. Our complete guide to buying term insurance online covers what to expect at each step, including realistic premium ranges.

Consider offline if online feels wrong. If the online experience is frustrating you with pop-ups and pressure tactics, walk into the insurer’s branch. For the same plan, the premium is identical, and you’ll deal with a person who can answer questions without an algorithm nudging them. We have a full guide on buying term insurance offline.

What should change

The CCPA’s 2023 guidelines list 13 dark patterns. The LocalCircles data suggests most online insurance platforms still use at least two to four of them routinely. Listing prohibited practices means nothing if violators face no consequences.

Three changes would make a real difference. First, IRDAI could mandate standardised quote pages where insurers display the all-inclusive premium (including GST and any selected riders) upfront, before collecting personal data. Second, cancellation should be as easy as purchase; a one-click cancellation button, no phone calls required. Third, the CCPA should publish the results of audits against specific platforms, naming which companies were found in violation. Public accountability tends to work faster than private warnings.

Until those changes happen, the burden falls on you as the buyer. The good news: once you know what dark patterns look like, they lose most of their power. Read through our step-by-step guide to buying term insurance in India before you start shopping. A little preparation saves hours of frustration.

Frequently asked questions

What are dark patterns in online insurance?

Dark patterns are design tricks that manipulate you into actions you didn’t intend: buying add-ons you didn’t select, sharing personal data you didn’t need to share, or staying in a policy you want to cancel. The CCPA identified 13 types in its November 2023 guidelines, including subscription traps, nagging, bait-and-switch, and forced action.

Is buying term insurance online safe?

Buying directly from an insurer’s website is safe. The risks flagged in the LocalCircles survey mostly apply to third-party aggregator platforms that use dark patterns to push sales. Our guide on buying term insurance online covers how to navigate the process without falling into these traps.

Can I file a complaint if an insurance platform uses dark patterns?

Yes. Under the Consumer Protection Act, 2019, you can file a complaint with your district or state consumer forum. You can also complain to the CCPA or to IRDAI’s Integrated Grievance Management System (IGMS). Screenshot any misleading pricing, pre-ticked add-ons, or aggressive pop-ups as evidence.

Are insurance premiums different online vs offline?

For the same plan, cover amount, and policy term, no. Insurers file a single rate table per product with IRDAI, so whether you buy through an insurer’s website, an agent, a bank, or a broker, the base premium is identical. Some insurers do offer separate online-only products at different price points, but those are distinct plans filed independently.