# Government Reveals What It Did With Unclaimed Insurance Amount Of Rs 1,723 Crore In Last 5 Years

In the last five years, the IRDAI transferred a mammoth unclaimed insurance amount of Rs 1,723 crore to the Senior Citizens’ Welfare Fund (SCWF), which was further partly utilized for different purposes in the Department of Social Justice and Empowerment and the Ministry of Civil Aviation.

This is as per the information revealed by the government. Yesterday, during a question answer session in the Lok Sabha, Member of Lok Sabha Sumalatha Ambareesh put forth multiple questions surrounding unclaimed insurance amounts. Asking the Minister of Finance, she had put forth four questions\- 

shutterstock

(a) whether it is true that as per the provision the Insurance Regulatory and Development Authority of India (IRDAI) has to transfer the unclaimed amounts of policy holders with interest to the Senior Citizens’ Welfare Fund (SCWF) every year; (b) if so, the details thereof including the total amount transferred from IRDAI to SCWF during the last five years, year-wise; (c) whether the Government has prepared any programme for welfare of senior citizens by utilization of the said funds; and (d) if so, the details of the schemes and programmes planned in this regard?   


Replying to these, the Minister of state in the ministry of finance, Dr. Bhagwat Karad answered, sourcing data from the IRDAI. The following were his replies in the Lok Sabha:

(a): IRDAI has informed that outstanding amounts lying in unclaimed accounts are settled in favour of respective policyholders or claimants upon receipt of claim request. Further, as per the provisions of Senior Citizens’ Welfare Fund Rules, 2016 notified by the Government of India and a Master Circular dated 25.7.2017 issued by the IRDAI, all insurers, who have unclaimed amounts of policyholders for a period of more than 10 years as on 30.9.2017 are required to transfer the same with interest to the Senior Citizens’ Welfare Fund (SCWF) every year. 

Further, even after transfer of the unclaimed amounts to the Fund, a policyholder or claimant continues to be eligible to claim the unclaimed amounts under their respective policies for a period of up to 25 years. (b): The year-wise, total unclaimed amounts of policyholders (for a period of more than 10 year) transferred (by life and non life insurers) to SCWF during the last five years is as under: 

Year 2017-18: Rs 81.62 Crore 

Year 2018-19: Rs 398.94 Crore

Year 2019-20: Rs 225.05 Crore

Year 2020-21: Rs 388.89 Crore

Year 2021-22: Rs 628.69 Crore

Total: Rs 1723.2 Crore 

Answering the last two questions, he also provided details of the utilization of funds under various schemes/programmes of the Senior Citizens' Welfare Fund (SCWF).

Total expenditure under Schemes/Programmes funded from SCWF is given below:

_Department of Social Justice and Empowerment_

(i) Scheme for Other Vulnerable Groups-Rs 16 Crore

(ii) Rashtriya Vayoshri Yojana (RVY) -Rs 159.51 Crore

(iii) Elderline: National Helpline for Senior Citizens- Rs 49.19 Crore

(iv) Promoting Silver Economy - Senior-care Aging Growth Engine (SAGE)-Rs 20 Crore 

_Ministry of Civil Aviation_

Purchase of Electric Operated Golf Carts for Senior Citizens at AAI Airports-Rs 0.98 Crore

Total-Rs 245.68 Crore