Unclaimed Insurance Money Will Be Reduced By Electronic Transfer

Get ₹1 Cr. Life Cover at just ₹449/month+
No medical checkup required
Save more with upto 10% discount
Covers COVID-19
Tax Benefit
Upto Rs. 46800
Life Cover Till Age
99 Years
8 Lakh+
Happy Customers
+Tax benefit is subject to changes in tax laws. +Standard T&C Apply
++ Discount is offered by the insurance company as approved by IRDAI for the product under File & Use guidelines
Get ₹1 Cr. Life Cover at just ₹449/month+
No medical checkup required
Save more with upto 10% discount
Covers COVID-19
View plans
Please wait. We Are Processing..
Get Updates on WhatsApp
By clicking on "View plans" you agree to our Privacy Policy and Terms of use

Now Unclaimed Insurance Money Will Be Reduced By Electronic TransferIncreased from Rs. 1,372.64 crore in financial year 2010 to Rs. 4,865.81 by FY13, almost Rs. 5,000 crore unclaimed amount is lying with insurance companies. This amount is only increasing. According to Insurance Regulatory and Development Authority (Irda), this total increase is of more than 200% and an annual increase of about 52%. This has clearly worried Irda, so to plug this increase, the settlements such as maturity benefits or insurance claims are mandated to be done through electronic transfers only. But the major worry is that why policyholders are not claiming their insurance benefits.

Reasons for this delay

The settlement of an insurance claim or maturity amount like in life insurance plans which have an investment component is done through demand drafts and cheques according to Irda. Clearance of these plans can be time taking. It may also lead to rejection in case they are not time bound. In many cases, the dependants of the policyholder are unaware of the policy so they don't go for a claim. One more reason for pending claims is change of address.

So, to solve these problems, an electronic insurance account has been introduced which digitized policies and all the policies can be held in one account. You can also keep your address updated with the help of this new technology and the nominees of your policy can find the policies at one location. The nominees should also be informed about the insurance while purchasing one.

New rules for e-transfer of money

Irda has made it mandatory to forward proceeds of all the claims through electronic mode only from the next fiscal to make the settlements quick and direct. The insurer along with documentary proofs will also have to collect bank details as electronic clearance is mandatory for all new policyholders from now, while it is optional for existing life policyholders. Policyholders are needed to be informed about this option in the next six months by the insurer. The insurer will need bank details of the nominee as well to pay the death claims. The insurer has an option to pay by cheque in case the payment doesn't exceed Rs. 25, 000 for a non-life insurance policy or Rs. 10, 000 for a life insurance policy.

Types of Term Plans

Life insurance articles

Recent Articles
Popular Articles
Post Office Gram Suraksha Scheme Calculator

27 Jun 2022

A Post Office Gram Suraksha Scheme calculator is a useful online...
Read more
What happens if you stop paying life insurance premiums?

03 Jun 2022

Buying the best life insurance plan is a wise and learned...
Read more
Postal life Insurance Tax Benefits

26 May 2022

Postal Life Insurance is the oldest life insurer in the country...
Read more
How to Download PLI Statement Online?

24 May 2022

PLI or Postal Life Insurance was an initiative originally...
Read more
Is Life Insurance an Investment?

24 May 2022

The thumb rule to building wealth is to invest your money in...
Read more
How to Check LIC Policy Status, Details, Statement via Online/SMS/Call
Last year, Mr. Rajiv Verma bought a Child LIC policy to provide financial security for his kid's future. However...
Read more
How to Cancel SBI Life Insurance Policy?
As per the Insurance Regulatory and Development Authority, you can cancel a life insurance policy taken within 15...
Read more
SBI Life Insurance 50,000 per year Plan for 5 Years
Life insurance is not only about the financial protection of the family but also about working for life’s...
Read more
Surrender Value in Insurance
Have you bought a life insurance policy which is not as per your requirement? Are you planning to terminate the...
Read more
PLI Surrender Value Calculator
PLI Surrender Value Calculators have proven to be one of the simple tools for digitally savvy customers. PLI...
Read more

View Plans
Download the Policybazaar app
to manage all your insurance needs.