IRDAI is working on mechanism to return Rs. 15,000 crore of unclaimed deposits lying idle with life insurers.
For amounts stuck in pension schemes, IRDAI has asked life insurers to repay them as lumpsum payments to policyholders or their beneficiaries.
“There are many reasons why the insurance money is lying unclaimed. The policyholder may have died or there may be other reasons. In pension schemes, it was often the case that the accumulated amount was insufficient to buy annuity from the life insurer,” according to sources.
Earlier, the IRDAI had asked life insurance companies to provide a search facility on their website so that policyholders or their nominees could find out about the unclaimed amount 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.
According to official data, Rs. 15,166.47 crore was lying unclaimed with 23 life insurers as on March 31. Of this, Rs. 10,509 crore was with Life Insurance Corporation of India, and Rs. 4,657.45 crore with private insurers.