IRDAI keen to see ₹15,000-cr un­claimed amounts re­turned to pol­icy hold­ers

The Hindu Business Line - - FRONT PAGE - SURABHI

With over ₹15,000 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) has asked life in­sur­ers to re­pay them as lump­sum 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 Aad­haar 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, ₹15,166.47 crore was ly­ing un­claimed with 23 life in­sur­ers as on March 31. Of this, ₹10,509 crore was with Life In­sur­ance Cor­po­ra­tion of In­dia, and ₹4,657.45 crore with pri­vate in­sur­ers.

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