Unclaimed funds from Life Insurance Corporation (LIC) policies have become a significant concern. Every year, numerous policies mature, and many death benefit claims arise, yet a portion of these funds remains unclaimed. Here's a detailed look into the issue and the steps taken by the government and LIC to address it.

Unclaimed LIC Funds: An Overview

Unclaimed funds arise when policyholders or their nominees fail to claim maturity benefits, death benefits, or other payouts. These unclaimed amounts are often discussed in parliamentary sessions, where the government provides updates on their status and measures to address the issue.

Statistics on Unclaimed Funds

The unclaimed amounts reported by LIC over the past five years highlight the scope of the issue:

Key Reasons for Unclaimed Funds

1. Policyholders or nominees being unaware of maturity or death benefits.
2. Lack of updated contact details of policyholders or nominees.
3. Nominees being unaware of the policyholder’s investments in LIC.

Steps Taken to Address Unclaimed Funds

1. Settlement of Outstanding Claims

• Claims are processed and settled upon receipt of valid requests.
• Funds unclaimed for over 10 years are transferred to the Senior Citizens’ Welfare Fund (SCWF), as per 2016 regulations. However, claimants can retrieve these funds for up to 25 years after transfer.

2. Proactive Communication

• LIC sends reminders via post, email, and SMS.
• LIC officials visit policyholders’ residences to provide assistance.

3. Public Awareness Campaigns

• Advertisements in print, digital media, and radio.
• Policy service camps held in localities to educate and assist policyholders.

4. Digital Facilitation

• Unclaimed claim data and required documents are listed on the LIC website.
• Online registration for NEFT details is available for seamless settlement.

5. Simplified Claim Process

• Policies can be claimed with valid NEFT details, reducing delays.
• Documentation can be submitted at any LIC branch, ensuring convenience.

6. Use of Technology

• Credit bureau agencies help update policyholders’ contact information.

7. Continuous Follow-Up

• Agents and Development Officers ensure compliance with claim requirements.

Special Focus on Rural and Semi-Urban Areas

The government emphasizes raising awareness and simplifying processes for policyholders in rural and semi-urban areas. Targeted campaigns and service camps in these regions form a crucial part of the outreach efforts.

Ensuring Policyholders’ Rights

The government’s measures reflect its commitment to ensuring that LIC policyholders and their nominees can access their rightful funds without unnecessary delays or complications. Through proactive communication, technological integration, and public awareness campaigns, LIC aims to minimize unclaimed funds and uphold policyholders’ rights.