How to Track and Recover Unclaimed Life Insurance Policies in India

India's life insurance industry holds billions in unclaimed life insurance amounts, a cumulative figure representing matured benefits, survival benefits, or unpaid death claims that were never received by the rightful policyholders or nominees. This happens due to lost paperwork, address changes, or lack of awareness. According to recent reports, unclaimed amounts with life insurers stood at over ₹22,000 Crore⁽¹⁾ at the beginning of FY24.
If you suspect you are the rightful owner or nominee of a lost life insurance policy with ABSLI or any other insurer, you need a clear, actionable guide. The recovery process is regulated by the Insurance Regulatory and Development Authority of India (IRDAI), ensuring that funds are traceable and recoverable.

Step 1: Locating Your Unclaimed Life Insurance Policy

The first and most critical step is to determine if an amount is due and, if so, with which insurance company the unclaimed insurance policies reside.
The best way to locate an unclaimed life insurance policy is to use the online search facility provided by the individual life insurance company or the centralized search tools listed on the IRDAI website.

The IRDAI Regulatory Mandate

To combat the rising figures of unclaimed amounts, IRDAI mandates that every life insurer must maintain a searchable database on its website.

• Required Search Fields: To search ABSLI's or any other insurer's portal, you typically need just three key pieces of information about the policyholder:
  

○ Full Name
○ Date of Birth
○ PAN or Aadhaar Number

• Policy Threshold: Insurers are required to publish details of all unclaimed amounts on their official websites.
• Consolidated Search Tool: While IRDAI does not host the data directly, the regulator promotes the use of Insurance Repositories (like CAMS, NSDL) which store policies electronically. If the original policyholder had an e-Insurance Account (eIA), you can track the policy details through the respective repository

Step 2: Understanding Where the Funds are Held

The duration for which an amount remains unclaimed dictates where the fund is physically held, but this does not affect your right to claim it.
Funds remain with the insurance company for ten years from the date they became due; after this period, the unclaimed amounts must be transferred to the central government's Senior Citizens' Welfare Fund (SCWF) ⁽²⁾, as mandated by IRDAI.

• Funds Held by the Insurer (0–10 Years): If the money has been due for less than ten years, it is maintained in the insurer's Unclaimed Policy fund. You can recover it directly from ABSLI.
• Funds Transferred to SCWF (After 10 Years): According to IRDAI Master Circulars, any amount remaining unclaimed for more than ten years as of September 30th must be transferred to the SCWF by the following March 1st⁽²⁾.
• Recovery from SCWF: Even after transfer to the SCWF, the policyholder or nominee has an extended period of 25 years to recover the funds. The recovery process simply shifts from the insurer to the nodal officer managing the SCWF funds via the insurer.

Step 3: Initiating the Recovery and Claim Process

Once you have confirmed that an amount is due and verified the insurance company, the process is similar to a standard claim settlement, but requires extra diligence.
For starters, you must contact the insurer's customer service with the policyholder's details. Then, submit the necessary recovery form, and provide documentation to establish your identity and your relationship to the original policyholder.

Essential Documentation for Recovery

If you have lost the physical policy bond, you must inform ABSLI. You will typically need to submit:

• Policyholder Identification: Copy of the Policyholder’s PAN card or Aadhaar Card (used as proof of identity during the search phase).
• Original Policy Document: If unavailable, you must submit an Indemnity Bond on non-judicial stamp paper, countersigned by the nominee, confirming the policy bond is lost life insurance policy.
• Proof of Entitlement:
  

○ For Death Claim: Original Death Certificate.
○ For Maturity/Survival Benefit: Claimant's proof of identity and relationship to the policyholder (if the policyholder is deceased).

• Bank Details: A cancelled cheque or NEFT mandate form for direct fund transfer. IRDAI guidelines encourage insurers to use NEFT/RTGS for all payouts to prevent lost cheques.

Proactive Prevention is Key

To prevent your policy from becoming an unclaimed life insurance amount, remember the "Three U's" rule:

• Update: Regularly update your contact details (address, mobile, email) with ABSLI.
• Uncover: Inform your spouse or a trusted family member about all your unclaimed insurance policies, their policy numbers, and the insurer's name.
• Utilize: Ensure your nominee details are correct and that the policy document is stored digitally (e.g., in an e-Insurance Account).

Conclusion

The issue of unclaimed life insurance funds is large, but the good news is that IRDAI has established clear, regulated procedures to help you recover your rightful funds. By using the online search portals and initiating direct contact with ABSLI, you can ensure that your lost life insurance policy yields the financial benefit it was intended to provide. Don't let your family's financial security remain just a statistic; take the proactive step to track and claim your money today.