Life Insurance Corporation of India (LIC), the country’s largest insurance company, has a deposit fund of Rs 21,539 crore as of September 2021, which has no claimants. This information has come out from the initial public offering (IPO) document submitted by LIC to the stock market regulator Securities and Exchange Board of India (SEBI). Let us tell you that LIC has filed a draft paper with SEBI for approval of IPO.
According to the draft paper submitted to SEBI, an unclaimed fund of Rs 21,539 crore deposited with Life Insurance Corporation of India (LIC) also includes interest. It has been told by LIC that the unclaimed fund was Rs 18,495 crore as of March, 2021 and Rs 16,052.65 crore at the end of March, 2020. Whereas till the end of March, 2019, this amount was Rs 13,843.70 crore.
Every insurance company has to post the details of unclaimed amount of Rs.1,000 or more on its website. The website also needs to provide the facility of verification of unclaimed amount to the policyholders or beneficiaries. The circular on unclaimed amounts without Insurance Regulatory and Development Authority of India (IRDA) details the procedures in this regard, the documents said. These processes include payment of unclaimed amounts, information to policyholders, accounting and utilization of investment proceeds, etc.
Under the rules of Senior Citizens Welfare Fund (SCWF), the unclaimed amount of policyholders held for a period of more than 10 years will be transferred to the Senior Citizens Welfare Fund (SCWF). The unclaimed amounts circular states that on completion of 10 years, the unclaimed amount will be treated as per SCWF rules. All insurance companies are required to follow the accounting procedure issued by the Budget Division, Department of Economic Affairs, Ministry of Finance for transfer of unclaimed amount to SCWF. All insurance companies are required to transfer the unclaimed amount to SCWF on or before March 1 every year.
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