According to the data issued by the Insurance Regulatory and Development Authority of India (IRDAI), as much as Rs.15,167 crore remains unclaimed with various insurance companies in the life insurance segment. The regulatory body has advised insurance companies to take steps to identify these policyholders and settle the claim amount. IRDAI has identified 23 life insurers that have outstanding settlement amount to pay their policyholders.
Among the life insurers with unclaimed money, state-owned LIC takes the prime spot with over two-thirds of the overall unclaimed settlement amount. The nation’s largest life insurer has about Rs.10,509 crore in outstanding payments.
Among the private life insurance companies operating in the market, ICICI Prudential Life Insurance tops the list with about Rs.807.4 crore in unclaimed amount. Reliance Nippon has an outstanding payment of Rs.696.12 crore, SBI Life has an outstanding settlement amount worth Rs.678.59 crore, and HDFC Life has an outstanding settlement amount of Rs.659.3 crore.
There is a board-level committee of insurers in the market that currently monitors the timely payment of outstanding dues to policyholders. The committee also monitors the steps taken by insurance companies to oversee the unclaimed settlement amount.
IRDAI is currently focusing on taking steps to minimize the outstanding settlement amount that must be paid to policyholders. The regulatory body has asked insurers to disclose their unclaimed amount in their official websites every half year.
Moreover, IRDAI has also asked insurance companies to provide a search facility in their websites for policyholders to search their outstanding amount. With this search facility, even dependants and beneficiaries can see if they have any unclaimed money available with these insurance companies. Once this is implemented, policyholders or their dependants can make this search by providing various details such as the name of the policyholder, PAN number, Aadhar number, date of birth, etc.