What is deposit insurance?

by Dr. Gaurav Sinha , Mr. Vinay Kohli · Unit 97 of 100

Deposit insurance is a protection mechanism that safeguards eligible bank deposits up to the limit specified under applicable regulations if a participating bank is unable to meet its financial obligations. The scheme is intended to strengthen public confidence in the banking system by providing a defined level of protection to depositors.

What happens if insurance premiums are discontinued? Should you choose a family floater or an individual health insurance policy?