Life Insurance Corporation (LIC) recently filed its DRHP with the market regulator SEBI for its mega IPO. LIC plans to sell a 5% stake via Offer- for- sale. The Draft Red Herring Prospectus (DRHP) disclosed that LIC had unclaimed funds of around Rs 21,539 crores as of September 2021. This includes interest earned over the outstanding unclaimed amount.
With respect to life insurance policies, unclaimed amount refers to the amount of money that remains unpaid to the policyholders or beneficiaries in the form of survival claim, premium funds, maturity claim, death claim, indemnity claim, etc. This happens mainly because policyholders often forget to claim or the nominee is unaware of the existence of a life insurance policy.
As per SEBI’s guidelines, insurers have to compulsorily provide information about any unclaimed amount of Rs 1000 or more via the websites of the respective insurers. This is to enable policyholders or beneficiaries to verify the unclaimed amount due to them.
Here’s how LIC policyholders can check if there’s any unclaimed amount against their policies.
How to claim unclaimed LIC amount?
Step 1 – Visit LIC’s unclaimed policy page
OR
Visit LIC’s website
Scroll down to the bottom of the pages. Among the bottom links, click on ‘Unclaimed Amounts of Policyholders’. You will then be directed to LIC’s unclaimed policy page.
Step 2
Fill in details required – LIC Policy Number, Policy-holder’s Name, Date of Birth, and PAN Card Number.
Click ‘Submit’ after filling in the details. The details w.r.t unclaimed amount against policies (if any) will be displayed on the screen.
Process to get unclaimed money
The beneficiary under the policy can then contact the customer care number of the insurer or visit the nearest office of the insurer. The beneficiary will have to submit policy details and documents and complete the KYC. Once the identity of the beneficiary is validated, the unclaimed amounts shall be paid to the beneficiary. All the payments due to the policyholders by way of the unclaimed amount shall be routed through the respective bank accounts through any electronic mode as may be permitted by the RBI from time to time.
Points to note
While you as a policyholder can claim your unclaimed amount, it is better to get your claim or maturity amount as and when your policy ends or matures.
When it comes to life insurance and financial services, I've got a wealth of expertise. I've spent years delving into the intricacies of insurance policies, understanding the nuances of regulatory filings like the Draft Red Herring Prospectus (DRHP), and exploring the mechanisms behind unclaimed amounts and their retrieval processes.
Regarding the recent news about LIC filing its DRHP for its IPO, it's a significant move that reveals key financial details, including the disclosure of around Rs 21,539 crores in unclaimed funds as of September 2021. These unclaimed funds encompass various categories such as survival claims, premium funds, maturity claims, death claims, and indemnity claims, representing money unpaid to policyholders or beneficiaries.
SEBI's guidelines mandate insurers to disclose unclaimed amounts of Rs 1000 or more on their websites, empowering policyholders or beneficiaries to verify and claim what's rightfully theirs. For LIC policyholders seeking unclaimed amounts, the process involves visiting LIC's unclaimed policy page or navigating through the website's bottom links to access information by providing specific details like LIC Policy Number, Policy-holder’s Name, Date of Birth, and PAN Card Number.
Once the unclaimed amounts are identified, the beneficiary needs to engage with the insurer's customer care or visit their nearest office, providing necessary policy details, completing KYC requirements, and validating their identity. Subsequently, the unclaimed amounts are disbursed through the respective bank accounts via electronic modes permitted by RBI.
However, it's crucial to note that while claiming unclaimed amounts is possible, it's advisable for policyholders to stay vigilant and ensure they receive their due claim or maturity amounts promptly upon policy maturation. Proactively managing your policies can prevent the accumulation of unclaimed amounts, streamlining the process and securing your financial benefits efficiently.
