India - What happens to my life insurance policies if insurance company is closed? specifically term plans?
There are several private insurance companies in India and they are coming out with different plans. The insurance policies are long term contracts with an objective of providing protection for 20-30 year duration. In current economy, we are not sure how many of these private companies will survive. If an insurance company closes or goes bankrupt, what happens to my policies and premiums paid? Are there any guidelines by IRDA to deal with such situations to extend the protection to policy holders?
April 12th, 2009 at 12:53 PM
In that scenario you should be given a rebate for the payments you have made thus far. Read the terms and conditions of the agreement/policy.