Lost or unclaimed insurance amount as the name suggests are the dormant policy amounts that are lost over a period of time due to the untimely death of the insurance holder or for other reasons. Life insurance policy is of utmost importance as it acts as a financial safeguard if an untimely event occurs. The cover that is given to your family from the policy issuing company will help them continue their lives with financial stability.
The following are the amount declared by IRDA as lost/unclaimed insurance policies in the respective years:
- 2009-10 : Rs 1,372.64 crores
- 2010-11 : Rs 1,943.93 crores
- 2011-12 : Rs 3037.46 crores
- 2012-13 : Rs 4865.81 crores
There are many reasons for such high incidence of unclaimed life insuranceamounts:
- Lack of Knowledge About Existing Life Insurance Policies
In many cases, the insurer’s family is unaware of any life insurance plansthat he/she might have invested. This results in large amounts of money being lost or unclaimed that might have been a great financial help for the deceased person’s family.
- Delay in Claim Settlement
Sometimes, if there is delay in the process of claiming the amount or to get the claim check, the issued instrument tends to get barred. In such cases, the insured money stays with the insurance company itself.
- Change of Names And Addresses
Many a times, the insurance company is unable to send the insurer the matured amount due to a change in the address or name by the person. It is always advised to update your policy information from time to time to avoid such hassles.
How to Track Lost or Unclaimed Amounts From Life Insurance Policies?
- In case of an untimely death, the family members of the deceased can always check the websites of insurance companies to check if there is any unclaimed life insuranceamount. According to IRDA regulations, all companies are to display information about any unclaimed amounts online.
- You can also check the insurer’s email IDs or letters to check for any communication material from the life insurance policy company. You can easily get the information on any unclaimed amounts by entering the deceased person’s name and date of birth on the official websites of insurance companies.
- It is advised that the family members wait for a period of 5-6 months to allow the life insurance companies to garner the information and display it on their website.
It is important that you keep your family members informed about any such policies taken by you to avoid losing it. Maintaining all your investment records in one place can be helpful to your family and relatives as it makes it easier for them to claim the amount.
Read more about life insurance in India by HDFC Life.
About HDFC Life:
HDFC Life, one of India’s leading private life insurance companies promoted by HDFC Ltd. & Standard Life Ltd., offers a range of individual and group insurance solutions
