Why do life insurance claims remain unpaid?

Claims remain unpaid due to procedural gaps, including poor documentation, outdated contact details, or lack of communication within households.

How can families reclaim unclaimed insurance money?

Families can use online search tools, helplines, and grievance platforms provided by insurers and regulators to check for pending claims and track applications.

Home / Business and Economy / Unclaimed Life Insurance: ₹22,000 Cr Lost to Families

Unclaimed Life Insurance: ₹22,000 Cr Lost to Families

7 Feb

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Summary

Over ₹22,000 crore in life insurance benefits remain unclaimed.
Funds are not lost but belong to unaware families and heirs.
Insurers offer online tools to help families find missing money.

Unclaimed Life Insurance: ₹22,000 Cr Lost to Families

As of the start of FY24, over ₹22,000 crore in life insurance benefits remained unclaimed, indicating a significant awareness gap. According to Kamlesh Rao and Parag Raja, these funds are not forfeited but are owed to families and heirs who may be unaware due to outdated contact information or poor record-keeping.

These unclaimed sums include death claims, maturity benefits, and annuity payments. Insurers are obligated to transfer payouts unclaimed for over 10 years to a government fund, though beneficiaries can still claim them for an extended period. To aid recovery, online search tools and helplines are now available.

Life insurers have successfully reduced unclaimed balances by over ₹1,000 crore through outreach efforts, yet outdated databases pose an ongoing challenge. Policyholders are urged to proactively update their details and inform beneficiaries to ensure timely claim settlements.