It is the practice where the insurance company uses unfair means to settle claims at a lower cost than promised as per the policy. This is unlawful and can be complained against to the ombudsman or to the appropriate authority

Example:
Radha’s husband died and she went to the insurance company to claim her dues. Insurance company mis-handled her and shared false policy details after knowing about her lack of complete information about policy details and reduced the coverage, delayed payment or shared unsatisfactory response. All of the above comes under unsatisfactory claim settlement.