EFFECT on Term plan on Failure of Company

POSTED BY Rajesh Kumar ON February 18, 2011 8:52 pm ONE COMMENT

Sir,

I want to buy a term plan for Rs 25 lacs for 30 years from ICICI. I pay regularly for that and fulfill all its criterias. Let us suppose if ICICI become failure and roll back from India, What will be the effect on my investment ? Does IRDA will return my deposits with interest ? What will happen to my Insurance ? who will pay the claim if occured ?

One reply on this article “EFFECT on Term plan on Failure of Company”

  1. KM says:
    February 19, 2011 at 11:10 am

    Hi Rajesh,

    Solvency Margin has to be maintained by all the Insurance Companies in India whether its Private or Public sector. So with lot of rules/regulations from IRDA and the solvency rate of 150% there is less chance of any company having complete failure. If it still happens, then depending upon the amount of failure, there is a small risk to the end customer.

    Check out more details here: http://jagoinvestor.dev.diginnovators.site/2009/02/are-private-insurance-companies-safe.html

    Reply

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