The UN Assistance Mission for Iraq (UNAMI) said on Friday that the number of civilians killed stood at 575 and those injured at 1,196.
With 259 people killed and 770 others hurt, Baghdad was the most-affected province in the conflict-hit country.
The casualties in March saw an increase compared to those recorded in February, when 670 people were killed and 1,290 wounded.
Jan Kubis, the special representative of the UN secretary general for Iraq, voiced concerns about persistent violence in the Middle Eastern state.
"I am extremely disturbed at the continuing loss of life and injury as a result of [extremism], violence and armed conflict. It is totally unacceptable that civilians should bear the brunt of violence," Kubis said.
He further expressed hope that Iraqi Prime Minister Haider al-Abadi's proposed reforms to the country's political structure would offer hope for a better future in Iraq.
In January, a report compiled by UNAMI and the Office of the High Commissioner for Human Rights, warned that violence suffered by civilians in Iraq "remains staggering," with at least 18,802 civilians killed between January 1, 2014 and October 31, 2015.
Some 3.2 million Iraqis have also been displaced internally over the same period, the report said.
It further added that the Daesh group commits "systematic and widespread violence and abuses of international human rights law and humanitarian law. These acts may, in some instances, amount to war crimes, crimes against humanity, and possibly genocide."
The northern and western parts of Iraq have seen violence by Daesh since the group began an offensive in the Iraqi territory in June 2014. Iraqi army soldiers and fighters from Popular Mobilization units are involved in operations to eradicate Daesh.
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