Could Your Life Insurance Company Fail?

Life insurance your family offer much needed financial stability in case of sudden death. This is all the more important when the family breadwinner suddenly disappeared. Her family nor their vital needs and to maintain the same standard of living that was available that they previously had. However, goes bankrupt, what happens if the insurance?

How can I go to the Bank, your insurance company in bankruptcy. This does not mean that your hard earned money is gone forever, and you deprived. This is because every insurer shall on a regular basis is controlled by IRDA (insurance regulatory and Development Authority). The insurer shall maintain the unfortunate incident in the solvency margin for recovery in case of one.
What are the security measures

There are a variety of measures and regulations, Government and IRDA is performed, so always guarantee your money, even if the insurance company goes broke. There are strict guidelines and rules that ensure that result in one or two serious incidents or losses the company down. Two main actions that cover all these rules and are the basis of the various activities undertaken in the field of insurance:

• The Insurance Act 1938

• Insurance regulation and Development Act 1999 year

Various directives and regulations are as follows:

• Every insurance company must be registered and licensed by the competent authorities. This prevents businesses from carrying out their illegal operations and investors to cheat.

The process of registration and update must be strictly adhered to each insurance •.

• Possibility of payment in the amount of 150 lakh rupees should be submitted with the RBI, IRDA. A pledge of money compensation for customers is considered to be the case, which goes to the bankruptcy of the company.

• Insurance required, attached to the re-insurance company. Re insurance company accepts legal liability indemnity insurance requirements of the customer, if the insurer into receivership goes.

• Are strict rules on minimum capital requirements, accounts and Fund management companies.

• There are also strict rules on the amount of cash, companies invest in equity markets can individual stocks, etc.,