IRDAI releases mandates to counter 'unclaimed amounts'
Published: Jul 29, 2017
By TIOLCORPLAWS News Service
NEW DELHI, JULY 29, 2017: The Insurance Regulatory and Development Authority of India (IRDAI) has issued various circulars dealing with unclaimed amounts till date which contains directions regarding the accounting, and disclosures related to unclaimed amounts of policyholders held by insurers.
In last 3-4 years, the unclaimed amounts have witnessed substantial increase owning to that the Authority have issued a 'Master Circular' on July 25, 2017.
The Government has proposed to set up and administer a Senior Citizens' Welfare Fund (SCWF), through the provisions of Finance Act, 2015 and Finance Act, 2016, which mandates the transfer of Unclaimed Amounts of Policyholders to the Fund (SCWF) after a period of 10 years.
It has also notified a set of Rules under the SCWF, which specify the entities that are required to transfer the amounts to the Fund and the administration of the Fund. All insurers having unclaimed amounts of policyholders for a period of more than 10 years as on September 30, 2017 need to transfer the same to the SCWF on or before March 1, 2018.
Insurers would need to get the details of the account as well as the manner in which they are required to transfer the unclaimed amounts, from the Department of Financial Services, Ministry of Finance, Govt of India. Thereafter, every financial year the process laid down in the SCWF Rules, 2016 shall be followed as regards transfer of the unclaimed amounts of policyholders.
