What if life insurerfails? BJP MP demands safety net
BJP Member of Parliament Ajeet Madhavrao Gopchade has urged Prime Minister Narendra Modi to establish a safeguard for individual insurance policyholders should a life insurer fail or face insolvency. In a letter to the Prime Minister on September 25, 2026, Gopchade suggested creating a statutory protection scheme with separate arrangements for life and general insurance policies.
He also proposed a mechanism to ensure the continuity of life insurance policies by transferring viable portfolios to another insurer, or, if needed, through an orderly run-off mechanism. Gopchade cited examples from the UK, USA, Canada, Australia, and Hong Kong, highlighting how these countries have put in place resolutions to protect insurance policyholders' rights and asked the Department of Financial Services to study these options in the Indian context.
Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
