Rs. 15,167 Crore Unclaimed Money Lying With Life Insurance Companies
According to the Insurance Regulatory and Development Authority (IRDA) statistics, a staggering amount of Rs. 15,167 crore amount belonging to policyholders is lying unclaimed with 23 life insurance companies. In this context, Insurance regulatory has asked the companies to disburse old insurance claims after identifying the concerned policyholders or beneficiaries immediately.
The board-level committee continuously monitors insurance companies to protect the interests of the policyholder and takes measures to disburse claims to beneficiaries. Basically, Insurance companies are required to update information regarding unclaimed amounts on their websites on a six-monthly basis.
In the backdrop, on March 31, 2018, regulatory noticed that about 22 private sector insurers, including Life Insurance Company (LIC), had a disproportionate sum of Rs 15,166 crore which is not claimed. State-run Life Insurance Corporation has about Rs 10,509 crore unclaimed amount, while other private firms have Rs 4,657 crores.
Among private companies, ICICI Prudential Life Insurance has Rs. 807.4 crore of unclaimed insurance claims, followed by Reliance Nippon Life Insurance (Rs. 696.12 crores), SBI Life Insurance (Rs. 678.59 crores) and HDFC Standard Life Insurance (Rs. 659.3 crores).
Are Life Insurance companies offering search options on their websites so that those who live on behalf of a policyholder, nominee or policyholder will have a policy statement? “IRDA asked insurers. If you do not have such options IRDAI asked the life insurance companies to provide a search facility on their website to enable policyholders or beneficiaries ascertain any unclaimed amounts due to them that is still lying with the firms.
Policyholders/beneficiaries are required to enter the details like policy number, PAN of the policyholder, name of the policyholder, date of birth or Aadhaar number, in a window provided on the website of the insurer to find out the unclaimed amount.