Every year, millions of LIC policies mature, and thousands are claimed. However, in some instances, policyholders fail to claim their insurance money. What happens to these unclaimed funds?
Unclaimed funds held by LIC often spark discussions in Parliament, with MPs regularly raising questions about policyholders' unclaimed money.
During the recent winter session, Union Minister of State for Finance, Pankaj Chaudhary, addressed the issue, outlining steps taken to resolve it. Over the past five years, LIC has accumulated a significant amount of unclaimed funds, largely due to policyholders or their nominees failing to claim maturity, death, or other benefits.
To ensure these funds reach their rightful recipients, the government and LIC have implemented several initiatives. Upon receiving claim requests from eligible nominees, the outstanding amounts are promptly settled. Additionally, unclaimed funds held for over ten years are transferred to the Senior Citizens' Welfare Fund, as per the 2016 rules. However, eligible nominees can still claim these amounts within a maximum of 25 years.
Efforts to raise awareness and facilitate claims include sending reminders via post, email, and SMS, as well as LIC officials visiting policyholders' residences. LIC also places advertisements in print and digital media and uses radio announcements to inform policyholders about claiming their dues. To further enhance outreach, LIC organizes policy service camps in various residential areas.
The LIC website provides clear instructions and details regarding the documents required to claim unclaimed insurance money. Additionally, policyholders can register their NEFT details online through the LIC portal, simplifying the claim settlement process. To make it more convenient, policyholders can now submit claim applications at any LIC branch, with payments processed using NEFT.
LIC has also partnered with credit bureau agencies to update policyholders' contact details. Furthermore, LIC agents and development officers assist in resolving outstanding claims, with special attention given to policyholders in rural and suburban areas.
subscribe to Asianet Newsable WhatsApp channel by clicking here.