With over INR150bn ($2.1bn) of unclaimed money lying idle with life insurers, the industry regulator is working out means to return them to policyholders or their beneficiaries.
According to official data, INR151.7bn was lying unclaimed with 23 life insurers as at 31 March. Of this, INR105.1bn was with the country's biggest life insurer, Life Insurance Corporation of India, and INR46.6bn with private insurers, reports Hindu Business Line.
For amounts stuck in pension schemes, the IRDAI has asked life insurers to repay them as lumpsum payments to policyholders or their beneficiaries. Sources said that for other insurance plans where money is lying unclaimed with life insurers, the IRDAI is in discussions to figure out what can be done.
“The issue has been discussed at length, and the IRDAI is keen that the unclaimed amounts be returned to policyholders or their nominees at the earliest,” said a source, adding that the regulator is likely to announce more measures soon.
Earlier, the IRDAI had asked life insurers to provide a search facility on their website so that policyholders or their nominees could find out about unclaimed amounts by citing their Aadhaar or PAN.
Life insurers are expected to update details and inform the IRDAI about unclaimed amounts lying with them at least twice a year.