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IRDAI Guidelines: Transfer Unclaimed Money To Senior Citizens' Fund

As per the new order issued on Monday by Insurance Regulatory Development Authority of India (IRDAI), the unclaimed money resting with the insurance companies from past 10 years up until 30th September 2017 will have to be transferred to senior citizens’ fund at the latest by 1st of March 2018. The directive shall apply to both life and non-life insurance companies.

Why is there an unclaimed accumulation?

It turns out that at times, the policyholders after paying some portion of the chunk towards their premium discontinue with the policy without availing the benefits for several reasons. Other times, the nominees of the policyholders have no knowledge of the policy thereby their failure to make any claim leads to a build up in the unclaimed amount. This unclaimed accruals remain with the respective insurance companies. It is this amount that the IRDAI has ordered insurers to transfer to senior citizens’ fund account.  The directive is aimed at providing financial support to the needs of the senior citizens of India. The insurers are expected to complete the process of transfer on or before March 1 next year in order to comply with the instructions of IRDAI.

Consequently, the insurers will now have to prepare themselves and make provisions to get all the required details of the unclaimed accumulation and submit the same to the insurance regulator. Post the directive, as per a senior official, a total of over 100 crore is estimated to be transferred to the fund. 

 For further updates, keep following our news thread

(Source and Credits: Live Mint)

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