Page 6 - Life Insurance Today April 2018

using the unclaimed funds was there in the last Finance Secrecy, forgetfulness or sheer lack of knowledge can cost
Bill, but the scheme was not worked out. Thereafter you and your loved ones real money. This unclaimed
Budget Division, Department of Economic Affairs, MOF money could be from death or maturity claims, survival
issued Accounting procedure for transfer of the funds into benefits and premium refunds etc. Unclaimed funds are
the Senior Citizens' Welfare Fund. due to change of address of the customer, instruments
getting lost, incorrect bank account details, branch details
The IRDAI issued a master circular dated 25.07.2017 undergoing a change, etc.
advising insurers to transfer the unclaimed fund on or
before 1st March 2018. Thereafter, every financial year, Disclosure of unclaimed money on
the process laid down in the SCWF Rules, 2016 read with
accounting procedure for transfer of the funds into the website:
Senior Citizens' Welfare Fund shall be followed. In order to ensure timely payout to policy holders, IRDAI
has asked insurance companies to make various disclosures
As of Unclaimed Insurance Amount (in Rs.) such as the amount which remained unclaimed for more
Life Insurance Non-Life/General Ins. than six months from the due date of settlement, nature
of the unclaimed amount (death claim, maturity benefit,
Mar-2014 6,335 Cr 900 Cr
etc), details of action taken for payment of the unclaimed
Mar-2015 5,439 Cr 1,787 Cr money by the insurer and the status of the unclaimed
Mar-2016 10,527 Cr 1,198 Cr amount. The IRDAI has directed all insurance companies
to post unclaimed insurance money on their respective
What is this Unclaimed Amount?' websites, where the unclaimed sum is at least INR 1,000.
An unclaimed amount is the money due from a life
insurance company to the policyholders or their The lion's share of over INR110 billion unclaimed at 30
beneficiaries (nominees). This could be in the form of June was with life insurance companies. More than half
death or maturity claims, survival benefits, premium of it - INR60 billion belongs to LIC, the biggest life insurer
refunds (when a policy is cancelled) or indemnity claims - in the country. General insurance companies have a
combined unclaimed balance of about INR 9 billion.
including accrued interest, etc. Any amount that has not
been claimed for more than 6 months since their Initially, insurers have been told to upload this information
settlement date is considered an unclaimed amount by a on their website by 31 March 2014.
life insurance company.
Subsequently, they have been advised to put up this
information every six month by 30 September and 31
The aadhar link to your bank account and it creeping into
March every year. Among non-life insurers, United
several financial instruments as a contact field will reduce
Insurance had the maximum unclaimed amount at Rs 147
the probability of losing out with unclaimed money from
different financial products and services. But, if you have crore followed by ICICI Lombard (Rs 102 crore) and Bajaj
Allianz (Rs 92 crore).
already missed out on what is rightfully due to you from
the past, there are ways to recover it.

Reasons of hidden fortune:

There are chances that your investments become lost
when you move house and forget to update your details
with a financial institution or company. At times, the
policyholders do not raise claim against their insurance
money which leads to their cover remaining unclaimed
with the insurers. Money paid due to maturity of policies
or due to surrender of the policy and not received by the
customer is considered as unclaimed insurance money.

Whether I'm at the hangar or at the airport or on an airplane, I get respect. And that's the best part of my day.

6 April 2018 Life Insurance Today