Buying insurance online may appear quick and convenient, but a large number of users in India say the experience comes with serious problems. A nationwide survey has found that more than 80% of users faced issues such as hidden charges, difficulty with cancelling policies, forced data sharing, and misleading pricing while using online insurance platforms.
The March 2026 study by LocalCircles, based on over 87,000 responses across 341 districts, highlights the growing use of dark patterns in insurance apps and websites. These are tactics that push users to make decisions quickly, share personal information, or continue policies, often without full clarity on costs or terms.
What Are Dark Patterns and How They Affect You
Dark patterns are design and sales tactics used on apps and websites to influence user behaviour without clear consent. In insurance, the survey highlights several key types of dark patterns that users are facing. Such practices are not limited to insurance and are commonly seen across e-commerce, travel booking, and subscription-based platforms, where companies try to push users towards quicker or higher-value purchases.
They are often used to increase sales, collect user data, or reduce cancellations, even if it means making the process less transparent for consumers.
Subscription Traps Make Exit Difficult
This is one of the most common issues. About 80% of users said that once they bought a policy, it became difficult to cancel it. In many cases, users said cancellation options are not easy to find, or require multiple steps, delays, or calls. The problem has worsened over time, rising from 61% to 80% in the last two years. For users, this means getting locked into policies they may no longer want.
Nagging and Constant Push to Buy
Another major issue is constant pressure. Around 90% of users said they were repeatedly pushed to buy or continue policies through calls, messages, pop-ups, or reminders. Nearly 70% said this happens very frequently. This means even after showing no interest or trying to cancel, users continue to receive prompts, making it hard to step away.
Forced Data Sharing and Spam
Many users said they had to give personal details just to see policy options. About 85% of users said they were forced to share unnecessary personal information to get a quote. In many cases, this led to spam calls, messages, or misuse of personal data. The share of such cases has sharply increased from 57% to 85%. This raises concerns about both privacy and consent.
Bait and Switch Pricing
Pricing is another area where users feel misled. Around 82% of users said they were shown attractive low prices at first, but the final cost of the policy or renewal turned out to be higher. This means users often make decisions based on incomplete or misleading price information. In some cases, the final premium can go up five times the initial amount shown.
Hidden Charges at the Final Step
Many users also reported extra charges appearing later. About 65% of users said they faced hidden costs that were not clearly shown at the beginning but were added during purchase, renewal, or even claims. This makes it difficult for users to understand the true cost of the policy.
The Problem Is Spread Across Platforms
The study makes it clear that these practices are not limited to a few apps. Major platforms including Policybazaar, Acko, ICICI Lombard, Tata AIG, Bajaj Allianz, HDFC Ergo, Star Health, Go Digit, Coverfox, and InsuranceDekho were found to use between two to four dark patterns at the same time. Interface interference was the most common issue, present in over 70% of platforms. This means users may face multiple issues in a single transaction without realising it.
Real Cases Show How Users Are Impacted
The report also includes examples from users. Some users said they paid premiums but did not receive policy documents for weeks. Others found that their policy details were changed after purchase. There were also cases where users continued to receive calls even after asking platforms to stop contacting them. These examples show how dark patterns affect users in real situations.
Regulators Have Raised Concerns
The issue has also been flagged by policymakers. Finance Minister Nirmala Sitharaman has said that mis-selling of financial products is now treated as an offence and warned banks against pushing insurance unnecessarily. At the same time, the Reserve Bank of India has proposed stricter rules, including refunds in cases of mis-selling.
IRDAI has also taken steps to improve transparency, including extending the free-look period and introducing video-based onboarding to record customer consent. In April 2026, IRDAI directed insurers to conduct a self-assessment of their digital platforms within 15 days to identify dark patterns. If any such practices are found, they are required to submit an action plan within a month, outlining how they will remove or correct them.
Non-compliance can lead to regulatory action, including penalties under the Consumer Protection Act, 2019. The regulator has also partnered with the Institute of Public Auditors of India to independently identify and monitor dark patterns across the insurance sector over the next nine months.
How to Protect Yourself from Dark Patterns
For users, the findings show that buying insurance online requires extra caution. Here are some steps you can take to protect yourself:
- Check full pricing: Look for the final premium including all charges before making a decision.
- Read policy details carefully: Understand the terms, conditions, and exclusions before purchasing.
- Avoid sharing unnecessary data: Be cautious about sharing personal information just to get a quote.
- Understand cancellation rules: Know how to cancel the policy if you no longer need it.
- Watch out for pre-ticked add-ons: Review all selections carefully before finalising the purchase.
- Be aware of your rights: As a policyholder, you have the right to fair and transparent treatment.
Conclusion
The LocalCircles survey paints a concerning picture of the online insurance landscape in India. Over 80% of users are facing dark patterns that make it difficult to understand costs, cancel policies, or protect their personal data. While regulators are taking steps to address these issues, consumers must remain vigilant and informed.
Insurance is meant to provide financial protection. But for many users, the process of buying insurance online is becoming a challenge in itself. If you have been affected by dark patterns or feel you have been misled while purchasing insurance online, you are not alone.
If you are facing any issue with an insurance claim, policy cancellation, or mis-selling, do not fight alone. At Tatkal Claims, our team of claim experts specializes in helping policyholders navigate claim disputes, rejections, and delays. We understand the complexities of insurance contracts and the tactics insurers sometimes use to avoid payouts. Let us help you get the settlement you deserve. Visit Tatkal Claims today to know your rights and get expert assistance.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Please consult a qualified professional for legal matters.