LIC's 16.27 Lakh Claims Worth Rs3,726.8 Crore Remain Unclaimed, Outstanding: Govt
Moneylife Digital Team 20 December 2024
State-run Life Insurance Corporation of India Ltd (LIC) has over 1.62mn (million) claims that are not claimed or are outstanding with a value of Rs3,726.80 crore during the past five years since FY19-20, the government told the Lok Sabha. 
 
In a written reply, Pankaj Chaudhary, minister of state for finance, says, "Outstanding amounts lying in unclaimed accounts are settled in favour of respective policyholders or claimants upon receipt of claim request. Further, as per the provisions of Senior Citizens' Welfare Fund Rules 2016, notified by the government of India and a master circular dated 25 July 2017 issued by the Insurance Regulatory and Development Authority of India (IRDAI), all insurers, including LIC, who have unclaimed amounts of policyholders for a period of more than 10 years are required to transfer the same with interest to the Senior Citizens' Welfare Fund every year."
 
"Further, even after transfer of the unclaimed amounts to the Fund, a policyholder or claimant continues to be eligible to claim the unclaimed amounts under their respective policies for a period of up to 25 years," he says.
 
Asaduddin Owaisi, a member of Parliament (MP), has asked about the total amount of unclaimed funds held by LIC during the past five years and whether it is true that a significant number of policyholders or their nominees do not claim maturity benefits, death benefits and other payouts leading to the accumulation of unclaimed funds.
 
He also asked for the details of the quantum of funds that remain unclaimed due to non-settlement of maturity, death or other benefits and steps taken by the government to identify and contact policyholders or their nominees to ensure the rightful claim of these funds.
 
Mr Chaudhary, the minister, says reminder letters (for claims) are sent by LIC through ordinary or speed post as well as through email where available, and SMSs are sent where mobile numbers are available. 
 
"Unclaimed claim data, including the list of policies and requirements, are placed on LIC's website (www.licindia.in) from where the policyholders can check and claim the amount," he added. 
 
Data shared by the government shows that, during FY19-20, the total number of unclaimed and outstanding maturity claims was 243,790 valued at Rs480.78 crore. In the following year, during the COVID period, the number of unclaimed and outstanding maturity claims increased to 313,117, while the amount jumped substantially to Rs652.95 crore.
 
Over the next three years, or till FY23-24, the number of claims remained over 324,000 and the amount well over Rs815 crore. 
 
 
According to the data, the total number of unclaimed death claims of LIC during the past five years is 189, valued at Rs3.64 crore.
 
Comments
ksambaiah
2 months ago
This is serious issue, something has to be done with LIC for this problem.
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