IRDAI wants Rs 15,000-cr unclaimed amounts returned to policy holders – The Hindu Business Line – 9th November 2018

With over Rs15,000 crore of unclaimed deposits lying idle with insurers, the insurance regulator is
working on a mechanism to return them to policy holders or their beneficiaries.
For amounts stuck in pension schemes, the Insurance Regulatory and Development Authority of India
(IRDAI) have asked life insurers to repay them as lump sum payments to policyholders or their
beneficiaries.
“There are many reasons why the insurance money is lying unclaimed. The policyholder may have died
or there may be other reasons. In pension schemes, it was often the case that the accumulated amount
was insufficient to buy annuity from the life insurer,” noted a person familiar with the development.
Sources said that in respect of other schemes where money is lying unclaimed with life insurers, the
IRDAI is in discussion to figure out what can be done.
“The issue has been discussed at length, and the IRDAI is keen that the unclaimed amount should be
returned to policy holders or their nominees at the earliest,” said the person, adding that the regulator is
likely to come out with more measures soon.
Earlier, the IRDAI had asked life insurance companies to provide a search facility on their website so that
policyholders or their nominees could find out about the unclaimed amount by citing their Aadhar or
PAN. Life insurers are expected to update details and inform the IRDAI about unclaimed amounts lying
with them at least twice a year.
According to official data, Rs 15,166.47 crore was lying unclaimed with 23 life insurers as on March 31.
Of this, Rs 10,509 crore was with Life Insurance Corporation of India, and Rs 4,657.45 crore with private
insurers.

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