Life Insurance Corporation (LIC) of India, a major player in the Indian insurance market, holds a substantial amount in unclaimed funds belonging to policyholders. These unclaimed amounts often arise when policyholders fail to claim maturity proceeds, survival benefits, death claims, or premium refunds. According to recent data, LIC reported ₹880.93 crore in unclaimed maturity amounts for the financial year 2023-24, affecting approximately 3.72 lakh policyholders. These figures highlight the importance of understanding how to locate and claim these unpaid insurance monies.

What Constitutes an Unclaimed Amount?

In the context of LIC policies, an unclaimed amount refers to funds that are due to the policyholder or nominee but have not been collected. This can occur due to several reasons, including:

• Maturity Claims: Policyholders may not claim the maturity amount after the policy term ends.
• Survival Benefits: Payments due to the policyholder during the policy term, if not claimed, become unclaimed.
• Death Claims: Nominees may be unaware of a policy or may not have initiated the claim process after the policyholder's death.
• Unclaimed Premium: This includes premium money paid for the policy but not collected by the policyholder.
• Annuity Installments: Policyholders may not claim their annuity options or maturity proceeds from pension and insurance products.

As per LIC, if no benefits are received for three years or more, the amount is categorized as unclaimed.

How to Check for Unclaimed Amounts

LIC provides an easy online facility to check for unclaimed amounts. Here’s a step-by-step guide:

1. Visit the LIC Website: Go to the official website of Life Insurance Corporation of India.
2. Navigate to Customer Service: Look for the "Customer Services" tab on the homepage. Under this tab, find and click on the "Unclaimed Amounts of Policyholders" section.
3. Enter Policy Details: You will be redirected to a page where you need to enter specific details. This typically includes:
   • LIC policy number
   • Policyholder's name (mandatory)
   • Date of birth (mandatory)
   • PAN card details
4. Submit and View Details: After entering the required information, click on the "Submit" button. If there is any unclaimed amount associated with your policy, the details will be displayed on the screen.

If any issues arise during the online search, policyholders can visit the nearest LIC branch for assistance.

How to Claim Unclaimed Deposits

To claim unclaimed deposits, follow these steps:

1. Obtain the Claim Form: Acquire the necessary claim form from any LIC branch or download it from the official LIC website.
2. Gather Required Documents: Collect all supporting documents, such as:
   • Policy document
   • Premium payment receipts
   • A self-attested copy of PAN card
   • Updated Client Master List (CML) Report from depository participants
   • A scanned copy of a cancelled cheque
   • Death certificate (if applicable)
3. Submit the Form and Documents: Complete the claim form and submit it along with the required documents to the LIC office for verification.
4. Verification and Release of Funds: LIC will review the claim, and upon approval, the unclaimed amount will be released to the registered bank account through electronic channels.

Where Do Unclaimed Deposits Go?

As per regulations, any amount that remains unclaimed for over 10 years is transferred to the Senior Citizen Welfare Fund (SCWF) maintained by the Government of India. These funds are then used for the benefit of senior citizens. However, policyholders can still claim these funds even after they have been transferred to the SCWF.

Insurer Responsibilities

The Insurance Regulatory and Development Authority of India (IRDAI) mandates that every insurer must display information about any unclaimed amount of ₹1,000 or more on their respective websites. This information must be continuously displayed, even after ten years, to enhance transparency and encourage policyholders to claim their benefits.

By taking proactive steps to check for and claim unclaimed amounts, policyholders can ensure they receive the benefits they are entitled to, while also contributing to the efficient management of insurance funds.