In India does it matter whether you get insured with a public or private insurance company?



I think still many people would consider it safer to get insured with a public insurance company(like LIC or United India Insurance Co.) rather than with a private one because rejection rate in the case of former is much lower than in the later case. I have also read one report published in a magazine which supports this. What is your opinion?
Do you know about any website where this issue is discussed in detail? I would like to read more about it.

Thanks for you suggestions.

In India does it matter whether you get insured with a public or private insurance company?
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4 Replies to “In India does it matter whether you get insured with a public or private insurance company?”

  1. Well, you’re asking the USA board, about discussions of an India based issue. So my suggestion, is to go look at the Indian boards.




  2. Hi,

    According to Section 64VA of Insurance Act 1938 there is a solvency margin of Rs 150 crores that needs to be submitted to the RBI under IRDA, the Insurance Regulatory and Development Authority, as safety deposit money which is kept for repayment to customers in case the company declares bankruptcy.

    Also, each Insurance company is attached with a Re-Insurance company who takes up the liability of repayment to customers in case of a claim if the Insurer is unable to pay.

    Considering the above 2 factors, you can completely trust all private insurers in India who are under a strict regulation of the IRDA. Hence purchasing any policy from any of the private insurers do not involve in any risks.

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    Thanks
    Rupanjali M





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