Compensation Scheme - Life Assurance

Policyholder Protection

For life assurance companies, the Isle of Man's Life Assurance (Compensation of Policyholders) Regulations 1991 ensure that, in the event of a life assurance company being unable to meet its liabilities to its policyholders, and subject to the Regulations, the scheme manager shall pay to the policyholder out of the Policyholders' Compensation Fund a sum equal to 90% of the amount of any liability of the insurer under the contract.

The Island's scheme operates globally, providing protection to policyholders no matter where they reside.

The scheme would be funded by a levy on the funds of the other life assurance companies.


The Authority has produced a document setting out answers to a range of frequently asked questions in relation to the protection afforded to the policyholders of a long term business contract of insurance issued by an Isle of Man authorised insurer.