Russian DIA to Guarantee the Safety of Funds under Life Insurance Contracts

The State Corporation “Deposit Insurance Agency” (DIA) will, from January 1, 2027, guarantee the safety of funds contributed under contracts in the life insurance segment, including unit-linked life insurance plans (ULIP contracts), as well as combined contracts. The latter, in addition to life insurance, include protection against accidents, illnesses, and medical insurance.

The corresponding Law No. 477-FZ “On Guaranteeing Rights under Life Insurance Contracts” was signed on December 26, 2024, by the President of the Russian Federation, Vladimir Putin. The creation of a guarantee system in the insurance market will strengthen public confidence in voluntary life insurance and expand the development prospects for this segment of the financial market.

According to the new provisions, in the event of an insurance company’s license being revoked, the insured person, if they have a right to an insurance payout, will receive compensation of up to 2.8 million rubles. An increased limit – up to 10 million rubles – applies to the risk of the insured person’s death.

Within the same limits, DIA guarantees payment to citizens entitled to receive:

• the surrender value—the portion of funds contributed by the policyholder that is subject to return if the life insurance contract is terminated early;
• a refund of the insurance premium, calculated based on the amount paid for the insurance and the unexpired term of the contract;
• the amount of investment income credited to the policy account under a ULIP contract;
• other payments, the list of which is defined by law.