IRDAI has issued various directions regarding the Unclaimed Amounts of Policyholders from time to time. IRDAI has consolidated and issued a Master Circular.
The Government of India has brought in the Senior Citizens’ Welfare Fund Act, 2015 (SCWF) as a part of the Finance Act, 2015, which mandates the transfer of Unclaimed Amounts of Policyholders to the Fund (SCWF) after a period of 10 years. It has also notified a set of Rules under the SCWF, which specify the entities that are required to transfer the amounts to the Fund and the administration of the Fund. The Master Circular also provides for convergence in compliance taking into account the SCWF Act and the Rules notified thereunder.
All insurers having unclaimed amounts of policyholders for a period of more than 10 years as on 30thSeptember, 2017 need to transfer the same to the Senior Citizens’ Welfare Fund (SCWF) on or before 1stMarch, 2018. Insurers would need to get the details of the account as well as the manner in which they are required to transfer the unclaimed amounts, from the Department of Financial Services, Ministry of Finance, Govt of India. Thereafter, every financial year the process laid down in the SCWF Rules, 2016 shall be followed as regards transfer of the unclaimed amounts of policyholders..
