Hyderabad: The total unclaimed amount in terms of maturity claims in state-owned life insurance companies has been steadily increasing. As against a claim amount of Rs 480.78 crore from 2,43,790 policyholders in 2019-20, it has increased to Rs 880.93 crore from 3,72,282 policyholders in 2023-24. However, during the same period, the total unclaimed amount due to death from 89 policy holders was Rs. 2.02 crores down to Rs. 0.14 crore has been reached.
Responding to an unstarred question raised by Hyderabad MP Asaduddin Owaisi in the Lok Sabha, Minister of State for Finance Pankaj Chaudhary said that several steps have been taken to reduce unclaimed and outstanding claims.
He said, as per the provisions of the Senior Citizens Welfare Fund Rules, 2016 notified by the Government of India and the Master Circular issued by the Insurance Regulatory and Development Authority of India in 2017, all insurers including LIC have not claimed. For a period of more than 10 years, the amount of the policy holders is required to be transferred to the senior citizens along with interest. Welfare Fund every year. Further, even after transfer of unclaimed amount to the fund, the policy holder or claimant will be eligible to claim the unclaimed amounts under their respective policies for a period of up to 25 years.
Besides sending reminder letters, LIC also advertises in print and electronic media besides radio jingles to policyholders to claim their balance. LIC also maintains unclaimed claims data on its website and holds policy service camps in residential areas to educate and reach out to them, Pankaj Chaudhary said.