Master Circular: Unclaimed Amounts of Policyholders

Last updated: 20 November 2020

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This Master Circular consolidates previous directions regarding unclaimed amounts belonging to policyholders. Insurers with unclaimed amounts exceeding 10 years as of 30th September annually must transfer these funds to the Senior Citizens' Welfare Fund (SCWF) by 1st March. The circular details the necessary accounting procedures and adherence to the SCWF Rules, 2016. It also updates guidelines on monitoring, reporting, and certification of these unclaimed sums.

Circular
Ref. No:IRDA/F&A/CIR/Misc/282 /11/2020

Date:18-11-2020

All Life/ General/ Health Insurers

Master Circular: Unclaimed Amounts of Policyholders

The Authority has issued various directions regarding the Unclaimed Amounts of Policyholders from time to time. All such directions were consolidated and issued in the form of a Master Circular dt. 25th July, 2017.

All insurers having unclaimed amounts of policyholders for a period of more than 10 years as on 30th September, every year have to transfer the same to the Senior Citizens’ Welfare Fund (SCWF) on or before 1st March of the financial year. Insurers need to follow the accounting procedure as detailed in the notification dt. 21.12.2017 (copy enclosed) to transfer the unclaimed amounts to the designated account of the Govt of India. Every financial year the process laid down in the SCWF Rules, 2016 (copy enclosed) shall be followed as regards transfer of the unclaimed amounts of policyholders.

The directions in the Master Circular (Ver 02) are hereby being updated, more particularly, with regard to the monitoring, reporting and certification of unclaimed amounts. The Master Circular also provides for convergence in compliance taking into account various circulars issued by the Authority on the subject as well as the SCWF Act and the Rules notified thereunder.

FAQ :

The Master Circular consolidates all previous directions issued by the Authority regarding unclaimed amounts of policyholders.

Insurers must transfer unclaimed amounts of policyholders that have been unclaimed for more than 10 years as of 30th September, by 1st March of the financial year.

Insurers need to follow the accounting procedure detailed in the notification dated 21.12.2017 to transfer unclaimed amounts to the designated account of the Government of India.

Yes, insurers must follow the process laid down in the SCWF Rules, 2016, every financial year for the transfer of unclaimed amounts.

The directions have been updated, particularly concerning the monitoring, reporting, and certification of unclaimed amounts, and also incorporate convergence with other relevant circulars and the SCWF Act and Rules.

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Notification No : Ref. No:IRDA/F&A/CIR/Misc/282 /11/2020
Published in Corporate Law
Source : https://www.irdai.gov.in/ADMINCMS/cms/whatsNew_Layout.aspx?page=PageNo4288&flag=1

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