The Insurance Regulatory and Development Authority of India (IRDAI) has issued a circular dated February 15, 2024, highlighting the reasons behind the increase in unclaimed insurance amounts. According to the circular, one of the primary causes of unclaimed amounts is when consumers are traceable but insurers are unable to pay claims for various reasons. These reasons include:
* Due to ongoing litigation under an insurance policy
* Due to rival claims or open title issues
* Due to the freezing or blocking of insurance policies by government agencies
* Due to delayed payments from consumers who are out of the country
Additionally, IRDAI has observed that some consumers fail to claim annuity options and maturity proceeds from pension and insurance products. As a result, these amounts remain unclaimed.
To address this issue, IRDAI has directed all insurers to display information about unclaimed amounts of Rs. 1,000 or more on their respective websites. This display of information is to continue even after completion of 10 years. The aim is to ensure transparency and facilitate claims settlement by providing consumers with easily accessible information on unclaimed amounts. This move is expected to benefit both consumers and insurers, as it promotes accountability and efficient claims resolution. By making information readily available, consumers who are aware of the unclaimed amounts can take proactive steps to claim their due amounts, while insurers can focus on settling claims and maintaining regulatory compliance.