Unclaimed LIC Insurance in Crores

23 Apr, 2022 10:31 IST|Sakshi Post

It's worth noting that India's largest life insurer holds two-thirds of the total unclaimed funds. In the insurance industry, there are a total of 23 private players.

Hyderabad: The Life Insurance Corporation of India (LIC) has more than Rs. 21,330 crore in "unclaimed" money, according to Minister of State for Finance Dr Bhagwat Karad. In addition, the Senior Citizen Welfare Fund (SCWF) has received Rs 1,255.66 crore in unclaimed money that had been lying with the LIC for over ten years.

This fund is used to promote the well-being of senior citizens in India. The money goes into the Central Government's kitty if no claim is made for 25 years after it is transferred to the Senior Citizens Welfare Fund. It's worth noting that India's largest life insurer holds two-thirds of the total unclaimed funds. In the insurance industry, there are a total of 23 private players.

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"Regarding unclaimed funds available with LIC, officials of the board of LIC have informed us that as of December 31, 2021, it has an outstanding unclaimed (for a period not exceeding ten years) amount of Rs. 21,336.28 crore under individual and group business policies," the minister told Rajya Sabha.

What exactly does the rulebook state?

After receiving a claim request, an outstanding sum in "unclaimed accounts" is resolved in favour of policyholders or claimants. If no one claims the money, the unclaimed insurance is transferred to the Senior Citizens' Welfare Fund's bank account (SCWF).

According to the provisions of the Senior Citizens' Welfare Fund Rules, 2016, and a Master Circular of the Insurance Regulatory and Development Authority, all insurers, including LIC, with unclaimed amounts of policyholders for more than 10 years as of September 30, 2017, must transfer the funds to the Senior Citizens' Welfare Fund (SCWF) every year with interest.

However, there is a condition. A policyholder or claimant is still entitled to a claim under their separate policies for up to 25 years after the unclaimed sums are transferred to the Fund.

How is LIC reaching out to policymakers?

According to the LIC, all of its branches have been instructed to follow up on unpaid amounts and notify policyholders. Unclaimed amounts are also shown on the company's website, so policyholders or legal heirs can compare the unclaimed amounts to their policy number.

After being transferred to SCWF, unclaimed funds are paid to policyholders or legal heirs. The data in the table is from the 12-month period that ended on December 31.

Rs. 4.6 Lakh on September 30th, 2018.

As of September 30th, 2019, the total amount was Rs 1.61 crore.

On September 30, 2020, the amount was Rs 1.51 crore.

As of September 30, 2021, the total value was Rs 8.08 crore.

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