Every year, lakhs of LIC policies mature, and thousands of policies become due for payment due to death claims. However, in some cases, claimants and nominees do not come forward to claim their rightful money. So, what happens to these funds when they remain unclaimed?
Unclaimed funds held by the Life Insurance Corporation of India (LIC) often become a topic of discussion in Parliament, where members frequently ask the government for data on policyholders’ unclaimed money.
In response to queries in the Lok Sabha in the recently concluded Winter session, the Minister of State in the Ministry of Finance, Pankaj Chaudhary, shed light on this issue and outlined the steps being taken to address it.
Also Read Tax Implications of Foreign ETFs: Key updates for salaried investors EPFO Update: Govt to increase minimum pension amount under Employees’ Pension Scheme? Here’s what FinMin says Budget 2025: Extend delayed payment provisions to medium enterprises, says PHD Chamber How safe is your FD in a small finance bank! Key things to consider before investing
Also read: When will all Sahara India depositors get their money back? Govt reveals details
Total unclaimed LIC funds
Over the last five years, LIC has reported significant amounts of unclaimed funds due to non-settlement of maturity and death claims. The details are as follows:
Total Unclaimed and outstanding Maturity ClaimsTotal Unclaimed Death ClaimsyearsNumberAmount (Cr)NumberAmount (Cr)2023-243,72,282880.93100.142022-233,73,329815.04310.812021-223,24,813897.1240.242020-213,13,117652.95350.432019-202,43,790480.78892.02
Reasons for unclaimed LIC funds
A significant number of policyholders or their nominees fail to claim maturity benefits, death benefits or other payouts. This leads to the accumulation of unclaimed funds, which LIC and the government aim to minimise through targeted measures.
Also read: KCC Scheme: Get up to Rs 3 lakh loan at just 4% interest rate with this credit card! Here’s how to apply
Steps taken to address unclaimed funds:
The government and LIC have implemented several initiatives to ensure rightful claims of these funds:
Settlement of outstanding claims:
-Outstanding amounts are settled in favor of claimants upon receipt of valid requests.
-Funds that remain unclaimed for over 10 years are transferred to the Senior Citizens’ Welfare Fund as per the 2016 rules. Claimants can still claim these amounts for up to 25 years after the transfer.
» Read More
