The latest directive put forth by the insurance regulatory body is in continuance of the earlier order concerning unclaimed amounts. As per the latest order given on Tuesday, accruals that remain unclaimed for more than ten years as on September 30 shall have to be diverted into a special fund for elderly or senior citizens by March 1, 2018.
"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," said the IRDAI order
Insurance Regulatory and Development Authority of India (Irdai) asked insurers to take note of all such accounts as well as the prescribed proforma in which the unclaimed insurance accruals have to be reported from the Department of Financial Services. So, in accordance with the SCWF Rules, 2016, insurers will need to divert the unclaimed deposit amount of policyholders in each financial year.
The Senior Citizens' Welfare Fund Act, 2015 (SCWF) was enacted as part of the Finance Act, 2015, that calls for mandatory diversion of unclaimed deposit amount of insured to the SCWF fund in case the claims are not made for 10 years.
The rules shall be applicable to all of the life, health as well as general insurance.