Whether i take term insurance from Private Insurance Company?

POSTED BY santosh kumar sharma ON June 1, 2013 4:05 pm COMMENTS (3)

I want to planning to take term insurance. If i take insurance for 35 years from private  company then what happen if company get colsed or bank courrupt before policy term.


3 replies on this article “Whether i take term insurance from Private Insurance Company?”

  1. Prashant Kumar says:

    Dear Santosh,

    Thou shall fear not, Indian Insurance industry is regulated by very competent and conservative authority, IRDA.

    Life Insurance Companies cannot go for bankruptcy, there are many safety alarms and regulatory guidelines to avoid such scenarios.

    Incase of merger or acquisition, all the liabilities are automatically transferred to the new parent company.

    If an insurer chose to close their company, then he has to transfer all their liabilities and assets to accommodate existing customers.

  2. Dear Santosh, let me answer you differently. Please Google ‘AMP Sanmar’ & ‘HDFC Chhubb’.

    Please note down your findings & post it here,



  3. There are very specific rules reg. this in IRDA. There is something known as solvency ratio and insurers always need to maintain a minimum number to prove to IRDA that they are good enough to continue.

    If a company folds some other company will acquire and IRDA will ensure current policy holders are not affected.

    Insurance is a long term business. Companies will enter it only if they plan to stay for a very long time. So nothing to fear.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.