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The Economic Times

Shaghil Bilali

What will happen to policyholders if a life insurer fails? BJP MP urges PM Modi to create a safety net

Bharatiya Janata Party Insurance Narendra Modi Rajya Sabha CPC IRDAI Pay Commission The department of financial services the Rajya Sabha

Ajeet Madhavrao Gopchade, a Bharatiya Janata Party Member of Parliament in the Rajya Sabha, has asked Prime Minister Narendra Modi to create a statutory protection mechanism for individual insurance policyholders so that if a life insurance company goes bankrupt or faces insolvency, policyholders have protection to fall back on.

In a letter dated September 25, 2026, to the PM, Gopchade has suggested creating a statutory policyholders' protection scheme with separate arrangements for life and long-term and general insurance.

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