IRDAI modifies master circular on unclaimed amounts of policyholders

The IRDAI reminded insurers to make better efforts in terms of payment of dues.

In light of the alarming increase in unclaimed amounts by India’s insurers, the Insurance Regulatory and Development Authority of India (IRDAI) reminded the industry to enhance their efforts in tracing the rightful recipient of the unpaid amounts and ensure efficient disbursement of the same.

Thus, the IRDAI made changes to its Master Circular:

• "Due date" shall mean the date on which any amount or claim is due for payment as per the terms and conditions of insurance policy and/or the extant regulatory framework; 
• "Unclaimed Amounts" shall include any amount held by an insurer, but payable to consumers, including income accrued thereon, on account of their non- contactability through any means and remaining unpaid beyond twelve months. from the due date of such an amount. 
• “Consumer” for this circular shall mean proposer, policyholder, life assured, nominee, beneficiary or any other person who has a financial interest in the policy as per the terms and conditions of the insurance policy. 

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Insurers are tasked to pursue all necessary efforts to pay the dues at the earliest and may adopt the deeds as suggested by the announcement made by IRDAI and submit statements every 15th of the month.