Insurance Policyholder Protection Funds

Insurance Policyholder Protection Funds are reserve resources established by insurance authorities or industry associations to safeguard policyholders' interests. If an insurance company becomes insolvent or unable to fulfill its contractual obligations, these funds provide financial support to ensure policyholders can still receive claims payments, benefits, or coverage they are entitled to. Essentially, they serve as a safety net, maintaining trust and stability in the insurance system by protecting policyholders from the risk of insurer failure.