LIC Has The Unclaimed Amount Of Rs 21500 Crore

LIC has the unclaimed amount of Rs 21500 crore, disclosed by DRHP.

According to the draft prospectus filed for the IPO with markets regulator SEBI, state-run insurer LIC had unclaimed funds of Rs 21,539 crore as of September 2021.

This includes interest earned on the outstanding unclaimed amount.

According to the draft red herring prospectus (DRHP) filed by the Life Insurance Corporation of India (LIC), the unclaimed amount stood at Rs 18,495 crore at the end of March 2021 and Rs 16,052.65 crore at the end of March 2020.

At the same time, the total unclaimed amount at the end of March 2019 was Rs 13,843.70 crore.

Accordingly, every insurer is required to display information about any unclaimed amount of Rs 1,000 or more on their respective websites.

The facility should also be provided on the website to enable the policyholders or beneficiaries to verify the dues.

The Unclaimed Amount Circular by the Insurance Regulatory and Development Authority of India (IRDAI) lays down the procedures related to the mode of payment of the unclaimed amount.

The communication to policyholders, accounting, utilization of investment proceeds, etc.

It said the SCWF Act mandates the transfer of the unclaimed amount of policyholders held for a period exceeding 10 years to the Senior Citizens Welfare Fund (SCWF).

LIC has the unclaimed amount of Rs 21500 crore: The Senior Citizens Welfare Fund Rules, 2016 (SCWF Rules) specifies the entities which are required to transfer the amount to the SCWF.

It also contains provisions relating to the administration of SCWF. It said that the unclaimed amounts circular states that on completion of 10 years, the unclaimed amount will be treated as per SCWF rules.

It states, “All insurers should follow the accounting procedure issued by the Budget Division, Department of Economic Affairs, Ministry of Finance for transfer of unclaimed amounts to SCWF.