Insurance Company going bankrupt

POSTED BY Ajay ON February 3, 2011 10:01 pm COMMENTS (4)

Suppose the company through which you have taken the term insurance  go bankrupt, what will happen to your policy?

Any comments ?

This question was asked here

https://www.jagoinvestor.com/2010/08/review-of-iprotect-term-plan-from-icici-prudential.html

4 replies on this article “Insurance Company going bankrupt”

  1. mahesh says:

    My Question: Suppose today I am purchasing a team plan of 1 cr from ICICI Pru life. After 20 Years if this ICICI close there business due to any reason (like Lehman Brothers of USA, kingfisher airlines of India),what procedure IRDA will follow to help me in that case. Kindly provide the link where IRDA has mentioned this procedure.

    If I die in 21st year of policy will IRDA give 1 cr to my nominee?

    1. Its a term plan, there is no maturity benefits in term plan .

      Also if a company closes the business, its generally bought by another company

  2. Anand says:

    I also heard that every insurance company has to deposit huge money (in crores) with IRDA before getting the license.

  3. Yogesh Tiwari says:

    Just like us, insurance companies also get themselves insured.

    Incase of indian companies, NIC is re-insurer of all the insurance companies. So, if any one goes bust, NIC funds it. Insurance companies do pay premium for such insurance, and it is by law mandatory for every insurance company to be re-insured, at least in India.

    Regards
    Yogi

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