General insurance The state insurance commission assure your claim when insurance company liquidate

[Lens1000]

The state insurance commission assure your claim if the insurance company go bankrupt.

It should be a thing of concern when you want to buy insurance policy that you should think of what happens if the insurance company go bankrupt. . The insured should be worried on whatever happens to his/her claim
If the insurance company faces financial instability.

If such a thing occurred , the insurance company will go through a recovery phase by the state insurance commission. This apex insurance body will make move to rehabilitate the embattled insurance company but if the rehabilitation didn't work out, the court will declare the company insolvent or bankrupt.

The state insurance commission takes over the business and the insured benefit is guaranteed. This short thread tells you not to worry if the insurance company go bankrupt. The state insurance commission got you covered.

 

[btaliat]

It is not a thing to be worried about if anything happens to the insurance companies. The government of the country is always in charged of these insurance companies and before the insurance closes up, government would have told them that they should either merged with some bigger companies to pay off their debt.

 

[Mandy96]

So if I get you right, you mean to say that the state insurance is just like another insurance body that covers the insurance company itself incase the insurance company encounters any financial challenges or probably go bankrupt. Honest I have always wondered about this, what if the insurance company itself goes bankrupt?

 

[Good luck]

The state insurance commission should be able to take a drastic measures if the insurance company a customer is dealing with go bankrupt or have any form of issues.they should be able to stand and make sure the situation is normalized to avoid any further problems.That should be their major work to fight for the right of an insurer in any insurance company.

 

[Jamoflondon]

If this analysis is true then I think insurance makes more sense to me in the sense that you have nothing to worry about since you are fully covered by the state insurance itself. This sounds like the state insurance stand as an umbrella coverage for the insurance company. Seems like the insurance company itself is insured. LOL!

 

[Lens1000]

It is not a thing to be worried about if anything happens to the insurance companies. The government of the country is always in charged of these insurance companies and before the insurance closes up, government would have told them that they should either merged with some bigger companies to pay off their debt.

That's the beauty of buying insurance policy.. this alone will assure you of the security on the policy that you buy. Many think they won't be able to claim their benefits if the insurance company is liquidated. It's similar to what is obtainable in the commercial banks. Your savings are secured by the state regulatory commission. This is why many still buy insurance policies.

 

[Lens1000]

So if I get you right, you mean to say that the state insurance is just like another insurance body that covers the insurance company itself incase the insurance company encounters any financial challenges or probably go bankrupt. Honest I have always wondered about this, what if the insurance company itself goes bankrupt?

That's exactly what was narrated in the short post. It's a way of protecting the insured and the funds with the insurance company. The interesting part is that the state insurance commission will make moves to rehabilitate the insurance company and if it's the situation is not solvable, then it takes over the affairs of the business through liquidity.

 

[btaliat]

Governemnt of a country always make sure that the citizens money and interest is well protected. Prior this, people that patronize insurance companies were doing it on their own risk because if anything happened to the company then, it would be the loss of their customers. To correct this, government needed to step in.

 

[Alexandoy]

I don't think we have that security of the insurance just like with banks. There is an Insurance Commission here that is the regulator of insurance companies. Some years back the Legacy Insurance went bankrupt and the clients were complaining that they lost their money. The government has nothing to it because it is not its responsibility. In other words you lose everything when the insurance company goes bankrupt.

 

[Lens1000]

Governemnt of a country always make sure that the citizens money and interest is well protected. Prior this, people that patronize insurance companies were doing it on their own risk because if anything happened to the company then, it would be the loss of their customers. To correct this, government needed to step in.

The case that you cited is peculiar yo Nigeria. Before, the savings and policies of the citizens are not protected. The insurance or banks will get away with your money when mismanaged. You will end up getting nothing after series of court cases. I remembered name of one bank that liquidated in the early 90s. Savanna bank, owned by one politician.. the bank end up defrauding people.

 

[Lens1000]

I don't think we have that security of the insurance just like with banks. There is an Insurance Commission here that is the regulator of insurance companies. Some years back the Legacy Insurance went bankrupt and the clients were complaining that they lost their money. The government has nothing to it because it is not its responsibility. In other words you lose everything when the insurance company goes bankrupt.

It's sad to know that the insurance policies are not protected by the government of your country. In Nigeria, it isn't so. The insurance commission would try to rehabilitate the embattled insurance company and if it was not successful, the government takes over the insurance company . This assures the policy holders of claiming their benefits as stated in the terms of agreement. People will never buy insurance policies in your country due to insecurity. I think it's an obligation the government of every country should adopt.