In a case when due to inadequate knowledge of the policy with the insurers, many a times the benefits by the insurers are left unclaimed, and if it the claim remains unclaimed for 10 years or more, the said funds then go to the Senior citizen welfare fund instead of the insurer making an attempt to find out the proper beneficiary to whom the payment should be made.
The problem is 2-way that is both the insurers and insured can be held responsible for it.
As the necessary KYC formalities by the insurance customers are not complied with. But with the aadhaar linking process with the policies, the process can be expected to get streamlined to an extent. So, all of the concerned who held policies with the insurers do make it a point to update their address and mobile number with the company as and when required.
Also, from the insurer's end there should be some relaxations on such ground such as the provision that allows the benefit to be paid to the nominee even if the original policy bond gets missing.
Genuine cases in which the amount had remained unclaimed should be now on entertained if the ground given is due to any of the case such as lack of knowledge such as non knowledge to the kins of insured about the existence of the policy or lack of financial acumen to get the payment processed.
Unclaimed policy amount should be detailed on the insurer's website with all relevant details. Though the call has been made to stick by it, there has been seen lacunae on this aspect as well.
So, this unclaimed amount not paid to the right beneficiary is or can prove to be highly taxing for the family where there are only one-two bread winners. Thus the govt should in all ways try to figure out ways to provide the funds to the rightful beneficiary and make the rightful payment to him.