In the realm of insurance, LIC’s unclaimed funds have become a topic of discussion in Parliament. MPs frequently raise questions about the unclaimed money of policyholders, bringing this issue to the forefront during the recent winter session.
Union Minister of State for Finance, Pankaj Chaudhary, addressed the matter, highlighting the steps taken to resolve the situation. Over the past five years, LIC has amassed a significant amount of unclaimed funds. This is mainly due to policyholders or their nominees failing to claim maturity, death, or other benefits.
To ensure these funds reach their rightful owners, the government and LIC have implemented various initiatives. When eligible nominees submit claim requests, the outstanding amounts are promptly settled. Additionally, unclaimed funds held for over ten years are transferred to the Senior Citizens’ Welfare Fund as per the 2016 rules. However, eligible nominees can still claim these amounts within a maximum of 25 years.
Efforts to raise awareness and facilitate claims include sending reminders via post, email, and SMS. LIC officials also visit policyholders’ residences. The company places advertisements in print and digital media and uses radio announcements to inform policyholders about claiming their dues. Moreover, LIC organizes policy service camps in various residential areas.
The LIC website provides clear instructions and details regarding the documents required to claim unclaimed insurance money. Policyholders can register their NEFT details online through the LIC portal, simplifying the claim settlement process. They can now submit claim applications at any LIC branch, with payments processed using NEFT. LIC has also partnered with credit bureau agencies to update policyholders’ contact details. Furthermore, LIC agents and development officers assist in resolving outstanding claims, especially in rural and suburban areas.
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