what would happen to the insures if a private insurance company withdraw business from india or got bankrupt?

recently i have insured myself under private life insurance co for 35 years. at present i am 32 years. i want to know that supposed after 20/25 years the company got bankrupt or withdraw their business from india. will i get protection for my rest of life.
what about re-insurance?
if any case happnes in india like AIG, United States

4 Replies to “what would happen to the insures if a private insurance company withdraw business from india or got bankrupt?”

  1. If the company is wound up then the contract of insurance becomes unexecutable due to the ceasing of the insurer itself and the insured will also loose the protection.

    If the insurance company withdraws its business in India, but the same company still exists in some other country, the insurance contract is in tact and the insured will continue to enjoy protection.

    @@@response to additional details

    1.Reinsurance contract is is only between the original insurance company and the re-insurer and the person insured by the original insurer will not get any right under reinsurance contract which also becomes void if the original insurance company goes bust.

    2. Please also note anything happening to AIG USA need not necessarily affect a company where its has participation in an Indian company.

  2. Generally Insurance companies going bankrupt has been very rare cases due to nature of business.When the company wishes to exit by selling completely from the country its entire customer portfolio gets shifted to the new company.However, if it happens without selling , as per the contract the company has to settle the last claim also.Hence, in any scenario your protection is intact for rest of your life.

  3. Never the customer will effect or loose their agreement in case the company withdraw business another existing or new company take care of the existing insurance liability what I feel.Even they have not the 100% share owner to withdraw.I think 25% with local partner”s as I feel.Against their asset only it granted to do the business.
    Rest of your life feel free and you are protected with rules and regulation of the govt regulatory body called IR DA.
    The private and public to all it is applicable.
    I thunk in US the AIG finance was effected by un secured credit/loan.Not AIG insurance.Please confirm.

  4. you should have asked this question before investment. Because investment check the company as it is a long term contract. As of now LIC is the best . Let us hope for the best .There is no case of bankrupt happened in India. AMPSanmar closed but taken over by Reliance. Which in turn affect our returns from investment.

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