Insurance on WebNotes

Zerodha insurance and Investor Protection Fund

Wed, 20 May 2026 00:00:00 +0000

Zerodha clients are protected against broker default by the Investor Protection Fund (IPF) maintained at each exchange (NSE, BSE). The protection cap is currently Rs 25 lakh per investor per broker per exchange, subject to revision by SEBI. Zerodha does not maintain a separate insurance policy; the protection is via the exchange-level IPF framework that applies to all brokers.

What IPF protects

IPF protection activates when:

The broker defaults (SEBI / exchange declares the broker unable to meet obligations).
Client funds or securities are missing at the broker.
The shortfall cannot be recovered via the broker’s own assets.

Coverage:

Insurance-Linked Savings vs Mutual Funds in India

Tue, 12 May 2026 00:00:00 +0000

Insurance-linked savings products – including traditional endowment plans, money-back policies, and unit-linked insurance plans (ULIPs) – have historically dominated household savings in India, competing with mutual funds for the same pool of long-term investable surplus. The relationship is partly complementary (life insurance provides mortality cover that mutual funds do not) and partly adversarial (both compete for the savings component of household financial allocation). The regulatory evolution, transparency improvements, and cost compression in both sectors have significantly altered the competitive dynamic between 2000 and 2025.