Insurance companies holding on to stash of unclaimed Rs 11,668 crore

NEW DELHI: Unclaimed amount of policyholders with insurance companies (both life and non-life) has reached around Rs 11,668 crore as on March 31, 2016, Parliament was informed today.

"There are unclaimed amounts of policyholders with various insurance companies in India. The approximate unclaimed amount with insurance companies as on March 31, 2016 is Rs 11,668 crore," Minister of State for Finance Santosh Kumar Gangwar said in a written reply to the Lok Sabha.

The approximate unclaimed amount with Life Insurance Corporation ( LIC) of India as on March 31, 2016, was Rs 5,934 crore.

The minister said unclaimed amount is common in insurance sector and over a period of time amounts have accumulated as unclaimed which is a cause of concern.

"It has been noticed by the Authority that the quantum of amount lying unclaimed by the policyholders is accumulating on year on year basis," Gangwar said.

Unclaimed amount includes any amount payable to policyholder as death claim, maturity claim, survival benefit, premium due for refund etc remained unclaimed beyond six months from the due date for settlement of the claim amount.