The Insurance Regulatory and Development Authority of India (IRDAI) issued a circular on February 15, 2024, regarding unclaimed amounts in insurance policies. One reason for the increase in unclaimed amounts is that consumers are traceable but insurers are unable to pay claims due to various reasons. These reasons include:
* Legal disputes or rival claims
* Government agency blocking or freezing of policies
* Incomplete or delayed payments
* Non-claim of annuity options and maturity proceeds from pension and insurance products
* Consumers being out of the country, making it difficult to settle claims
The IRDAI circular also requires all insurers to display information about unclaimed amounts of Rs. 1,000 or more on their websites. This information must be displayed even after 10 years of the due date. This is an effort to promote transparency and facilitate claim settlement.