Unclaimed Policy Amounts With LIC Surge To Rs 880.93 Crore; Learn How To Check If You Have Unclaimed Insurance Funds

Insurance policies are designed to mitigate risks and provide financial support during unexpected events or financial crises. However, data from the Life Insurance Corporation of India (LIC) reveals a rising trend in unclaimed maturity amounts. The unclaimed amount in LIC policies for FY 2023-24 reached Rs 880.93 crore, compared to Rs 815.04 crore in FY 2022-23 and Rs 480.78 crore in FY 2019-20, showing an increase of 8 per cent and 83 per cent, respectively.

In a recent written reply in the Lok Sabha, Pankaj Chaudhary, Minister Of State for Finance, informed that the unclaimed maturity amount in FY2024 belongs to 3,72,282 policies which have not been claimed yet. Notably, Rs 0.14 crore of the total unclaimed amount pertains to 10 unclaimed death claims.

In comparison, for FY 2022-23, there were 3,73,329 unclaimed policies of which 31 pertained to unclaimed death claims for Rs 0.81 crore. Here is the detail for the last five years.

Unclaimed LIC policies over five years

Source: Pankaj Chaudhary reply in Lok Sabha

When Does A Policy Amount Treated As Unclaimed Amount?

According to the Insurance Regulatory and Development Authority of India (Irdai) circular dated February 16, 2024, “Unclaimed Amounts" shall include any amount held by an insurer, but payable to consumers, including income accrued thereon, on account of their non-contactability through any means and remaining unpaid beyond twelve months from the due date of such amount.”

Such unclaimed amounts lying with insurers is a ‘regulatory concern’, mentions the circular indicating that it is important for the insurer to pay the maturity amount to policyholders within time. 

In another circular dated November 18, 2020, Irdai said, “All insurers having unclaimed amounts of policyholders for a period of more than 10 years as on 30th September, every year have to transfer the same to the Senior Citizens’ Welfare Fund (SCWF) on or before 1st March of the financial year.”

However, despite the insurer’s efforts to contact policyholders via letters, SMS, advertisement in print and digital media, publishing lists on the LIC website, and running policy service camps in different cities, this unclaimed amount has increased in FY2023-24.

How Policyholders Can Check And Claim The Unclaimed LIC Policy Amount

Anyone can check the status of their own, a family member, or other beneficiary's LIC policy. Here is how to do it: 

• Visit the official website of the Life Insurance Corporation of India

• Look for Customer Service on the page and click ‘Unclaimed Amounts of Policy Holders’

• Enter mandatory details like name and date of birth of policyholder and other information including policy number, and PAN details

• Click submit to get details if any unclaimed amount is lying in the policy

In case of any doubt, one can call customer care or visit LIC’s branch office.

In the era before the internet, it was a tiresome exercise to find details of one’s lost policy or related documents, but with the advent of technology and the digitalisation of financial documents and processes, it has become easier and needs smaller efforts to find out the details and claim rightful money if lying unclaimed with LIC.