Page 7 - Life Insurance Today April 2018

Unclaimed Amount of Policy Holders -
Non-Life Insurers
Figures in Rs. Crore
As on March As on March As on March
31, 2012 31, 2013 31, 2014

United Insurance 97.33

ICICI Lombard 142.95

Bajaj Allianz 56.23

Royal Sundaram 64.05
The companies have also been asked not to appropriate/
National Insurance 5.74 write back the unclaimed amounts under any
circumstances. In July, 2017, the insurance regulator issued
Total 647.55 a new rule directing that amounts unclaimed for more
than 10 years as of 30 September 2017 will have to be
deposited into a fund meant for senior citizens, the Senior
Senior Citizens Welfare Fund: Citizens' Welfare Fund by 1 March next year.

In India, an account is deemed unclaimed if there is no
activity for at least a decade. Notably, there is an estimated Thereafter, insurers will have to transfer such unclaimed
Rs.64000 crore worth unclaimed accounts in banks, sums every financial year to the Fund. However,
insurance companies, post offices, apart from inoperative policyholders and beneficiaries are eligible to claim the
provident fund accounts. Getting people to claim old unpaid amounts for up to 25 years from the date of
accounts is one of the biggest problems encountered by transfer of the same to the Senior Citizen's Welfare Fund.
these institutions. The process is not only unprofitable to If no claim is lodged during the 25 years, the money will
the institutions, but also tedious and often comes at a cost belong to the government.
for those who are the rightful claimants of the money.
IDLE Fortune
Here is what everybody ought to know about unclaimed Unclaimed amount belonging to policyholders
funds. As per IRDAI circular dated July 25, 2017, any
unclaimed money with an insurance company will be Name June 2017
moved to the Indian government's Senior Citizens Welfare LIC 6003.47
Fund, if the amount has been lying unclaimed for 10 years HDFC Standard Life 946.26
from the date it was payable to the policyholder or the ICICI Prudential Life 783.70
beneficiary. The government had created this fund through
the Finance Acts, 2015 and 2016, to promote the welfare Bajaj Allianz Life 632.82
of senior citizens, in which notified institutions have to SBI Life 549.29
transfer unclaimed monies. These institutions include: Reliance Nippon Life 546.71
postal savings scheme and Employees Provident Fund Tata AIA Life 309.12
schemes. In an amendment in April this year, the
government also added insurance companies to this list. Aviva Life 254.49
Birla Sun Life 245.12
Regulatory guidelines: PNB MetLife India 207.56
All insurance companies have to disclose unclaimed Figure in Rs crore; *Includes interest in some cases
amounts as a separate line in their financial statements. Date source: Financial reports of companies

What you measure and reward is what you're going to get.

Life Insurance Today April 2018 7