Corona Effect: Is Your Life Insurance Company Going to Collapse???
Corona Virus has created lot many fears in our minds and the most common fear we are developing is the uncertainty of everything around us in the near future. I came across a query from one of my clients asking what if his life insurance company cannot afford to settle the claims. This concern is very common and even you might have thought about the situation wherein if most of the customers of your life insurance company die due to outbreak of Covid-19 and your company may not be in a position to settle everyone’s claims. The happy news is that IRDA (Insurance Regulatory and Development Authority of India) strictly maintains the record of Solvency Ratio of all the insurance companies. And, because of this clause in existence you can stay confident that all the claims of your life insurance company will be settled and honored . What is Solvency Ratio? IRDA stipulates that all insurers - Life, Health and General—maintain a minimum solvency ratio of 150%. Solve...
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