The Insurance Regulatory and Development Authority of India (IRDAI) on February 16, 2024, issued modifications to the Master Circular: Unclaimed Amounts of Policyholders dated November 17, 2020.
The Insurers are advised to enhance their efforts in tracing the rightful recipient of unpaid amounts and ensure efficient disbursement of the same.
The following modifications are being made to the Master circular IRDA/F&A/CIR/Misc/202/11/2020 dated November 17, 2020 (Master Circular):
• Clause 2(1)(c) of the Master Circular stands modified as under:
"Due date" shall mean the date on which any amount or claim is due for payment as per the terms and conditions of the insurance policy and/or the extant regulatory framework.
• Clause 2(1)(f) of the Master Circular stands amended to the extent stated as under:
"Unclaimed Amounts" shall include any amount held by an insurer, but payable to consumers, including income accrued thereon, on account of their non-contact ability through any means and remaining unpaid beyond twelve months from the due date of such amount.
• After Clause 2(1)(f), following new clause is added:
Clause 2(1)(g): '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.
Insurers shall make all possible efforts for payment of these dues at the earliest and may adopt the measures as suggested in Annexure-1 to this circular and submit statements as per Annexure-ll by the 15th of every month.
The modifications will come into effect from February 16, 2024.
Kindly find the Annexure attached to the document below.
[Circular No. IRDAI/Life/CIR/Misc/41/2/2024]
