Lok Sabha Question No. 3276 (UNSTARRED), answered on 2024-12-16
Subject: Unclaimed Funds held by LIC
Ministry: FINANCE
Asked by: Shri Asaduddin Owaisi

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UNSTARRED QUESTION No. 3276

TO BE ANSWERED ON MONDAY,16 DECEMBER, 2024/AGRAHAYANA 25, 1946 (SAKA)

## UNCLAIMED FUNDS HELD BY LIC

3276. Shri Asaduddin Owaisi:

Will the Minister of FINANCE be pleased to state:

- (a) the total amount of unclaimed funds held by the Life Insurance Corporation of India (LIC) during the last five years, year-wise;
- (b) whether it is true that a significant number of policyholders or their nominees do not claim maturity  benefits,  death  benefits  and  other  payouts  leading  to  the  accumulation  of unclaimed funds;
- (c) if  so,  the  details  of  quantum  of funds  that  remain  unclaimed  due to non-settlement of maturity, death or other benefits, year-wise;
- (d) the  steps  taken/being taken  to  identify  and contact  policyholders or  their nominees  to ensure rightful claim of these funds; and
- (e) whether the Government has taken measures to raise awareness about unclaimed funds and simplify the claim process particularly for policyholders of rural and semi-urban areas?

## ANSWER

THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

- (a) to (e): The total amount of unclaimed fund in respect of outstanding death and maturity claims furnished by LIC for last five years is as under:-

| Years   | Total Unclaimed and outstanding Maturity Claims   | Total Unclaimed and outstanding Maturity Claims   | Total Unclaimed Death Claims   | Total Unclaimed Death Claims   |
|---------|---------------------------------------------------|---------------------------------------------------|--------------------------------|--------------------------------|
|         | Number                                            | Amount (Cr.)                                      | Number                         | Amount (Cr.)                   |
| 2023-24 | 3,72,282                                          | 880.93                                            | 10                             | 0.14                           |
| 2022-23 | 3,73,329                                          | 815.04                                            | 31                             | 0.81                           |
| 2021-22 | 3,24,813                                          | 897.1                                             | 24                             | 0.24                           |
| 2020-21 | 3,13,117                                          | 652.95                                            | 35                             | 0.43                           |
| 2019-20 | 2,43,790                                          | 480.78                                            | 89                             | 2.02                           |

In order to reduce the Unclaimed and Outstanding Claims following steps are undertaken:

- i. 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 Insurance Regulatory and Development Authority  of  India,  all  insurers,  including  LIC,  who  have  unclaimed  amounts  of policyholders for a period of more than 10 years are required to transfer the same with interest to the Senior Citizens' Welfare Fund 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.

- ii. Reminder letters are sent thorough ordinary/ speed post as well as through email where available and also SMS are sent where mobile numbers are available.
- iii. Both print media and digital media advertisement are given apart from radio jingles for policyholders to claim their due amounts.
- iv. Unclaimed claim data (list of policies) & list of requirements are placed on LIC's website (www.licindia.in) from where the policyholders can check and claim the amount.
- v. LIC officials visit the residence of the policyholders for requirements and settlement of the unclaimed amounts.
- vi. Policy service camps (campaigns) are organized in residential localities in various cities.
- vii. Facility of online registration of NEFT details is made available through LIC's portal.
- viii. A facility of anywhere submission of NEFT and claim requirements is provided to the policyholders for their convenience.
- ix. Claim settlement process is simplified and only valid NEFT is required to settle the claim. Continuous follow up is made with the policyholders through agents and Development officers to comply with the requirement and claim the amounts.
- x. Services of credit bureau agencies are utilised to get the latest contact details of the policyholders.
- xi. Division/branches arrange Policy Service Camps (Campaigns) in housing societies and prime areas in various cities.

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