Insurance accruals lying unclaimed for a period of over 10 years as on September 30 will have to be deposited into a fund meant for senior citizens by March 1 next year, an Irdai order said today. “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 Senior Citizens’ Welfare Fund (SCWF) on or before March 1, 2018,” it said. Sectoral watchdog Insurance Regulatory and Development Authority of India (Irdai) has asked insurance companies to get details of such accounts and the prescribed format in which the unclaimed deposits have to be submitted from Department of Financial Services.
Thereafter, insurers will have to transfer the unclaimed deposits of policyholders every financial year as per the SCWF Rules, 2016, said the order. The latest direction is in continuation of Irdai’s previous orders regarding unclaimed amounts of policyholders. The Centre brought in Senior Citizens’ Welfare Fund Act, 2015 (SCWF) as part of the Finance Act, 2015, which mandates transfer of unclaimed amounts of policyholders to the fund (SCWF) after a period of 10 years. There are rules under SCWF, specifying about the entities required to transfer such amounts to the fund and its administration. The rules apply to all life, general and health insurers.