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Over Rs 15,000 crore unclaimed amount of policyholders with life insurance companies in 2017-18

Strap: Incase claim is not processed, policyholder needs to get in touch with insurers and get the claim amount.

Last month in the Parliament it was announced that unclaimed amount of policyholders with life insurance companies for the last financial year stood at Rs 15,166. 47 crores. State run insurer, Life Insurance Corporation of India (LIC) has the highest unclaimed amount at Rs 10,509. 02 crore, while remaining is of the other private sector insurance companies.

In the last few years, unclaimed amount of the life insurance industry has seen continuous rise as in the past few years also the unclaimed amount for the industry stood at anywhere between Rs 8,000-Rs 12,000 crore. Out of the over 15,000 crores of unclaimed amount in last fiscal, around 13,300 is there with five insurers which includes LIC.

An unclaimed amount could be largely in the form of maturity or death claims, premium refunds, survival benefits. Any amount that has not been claimed for more than 6 months since their settlement date is considered an unclaimed amount by a life insurance company. It is likely that, unclaimed money is majorly from the Tier 2 and 3 cities in the country. It is because many people move from one place to another for their job or service and they don’t update their new address to insurance company. So even if insurers send the cheque it doesn’t get en-cashed.

This amount was disclosed in the Parliament on July 20, and Minister of State in the Ministry of Finance Shiv Pratap Shukla said, that Irdai through its circular on unclaimed amounts of policyholders, advised the life insurance companies to provide a search facility on their website to enable policyholders or beneficiaries or dependents to find out whether any unclaimed amounts due to them are lying with these companies.

Many a times, nominees are not aware of the policyholder who have passed away, there is a change in address or cheque can get misplaced-There are other multiple reasons why money may lay unclaimed at Insurance Companies. To get the unclaimed amount, regulator, Insurance Regulatory and Development Authority (Irdai) has asked all the insurers to provide search facility on the website of every company to allow policyholder to nominees to find the unclaimed amount.

If you want to claim the money from the insurer, incase your claims are not give to you or anyone in the family. One can give name, date of birth, policy number, Permanent Account Number (PAN) and Aadhaar number to know the unclaimed amount on the insurers website. Once the amount is known, one can reach out to insurers or through their agents/brokers to process the claims. Claims will be given be done through electronic transfer in bank once KYC is completed.

Even the insurance regulator, The Insurance Regulatory and Development Authority of India (Irda) has in its circular stated that, Insurers having unclaimed amount of policyholders for a period of more than 10 years it was advised to transfer the same to the senior Citizens Welfare Fund.

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