Insurance regulator Irdai would meet insurers next week to figure out their exposure to IL&FS and its group companies, to secure the policyholders' funds in view of the company defaulting on interest payments. All the insurance companies will also have to make a detailed disclosure of their equity holdings in IL&FS and its group companies by October 30.

Irdai will quiz insurers about the tenure of IL&FS papers held, any missed interest payments and the schedule of interest payments due. While Life Insurance Corporation of India (LIC) has the maximum exposure, in both debt and equity, to the group, some other insurers had subscribed to IL&FS long-term papers.

An Irdai official said the exercise is routine for securing policyholders' funds in case of companies defaulting.

IL&FS has not defaulted on any obligations to insurers so far. However, there is a risk of the group being unable to pay interest to insurers at least for the next three months.

Insurance firms are also required to disclose the details of any IL&FS shares they may have pledged and of those under lock-in period. The details of IL&FS' foreign shareholders and their equity holding pattern should also be disclosed to the regulator.

Irdai chairman Subhash Khuntia had earlier said that insurers should be aware of the risks associated with investing in low-rated debt instruments, considering the funds invested come from policyholders' accounts.