It has been noticed by the Authority that the quantum of the amount lying unclaimed by the policyholders/insureds is accumulating on year on year basis. The unclaimed amounts of the policyholders/insureds may be on the following account :
a. claims settled but not paid to the policyholders/insureds due to any reasons except under litigation from the insured/policyholders
b. sum due to the insured/policyholders on maturity or otherwise
c. any excess collection of the premium/tax or any other charges which is refundable to the policyholders either as terms of conditions of the policy or as per law or as may be directed by the Authority but not refunded so far
d. cheques issued by the Insurer for settlement under “A”, “B” or “C” above and cheques have not been encashed by the policyholders/insured
Presently, the unclaimed amount is not being disclosed separately. In view of the same, all the insurers are hereby advised that the amount representing the unclaimed sum shall be disclosed as a separate line item in Schedule 13 – “current liabilities” of the Balance Sheet. Further, its agewise analysis will also be disclosed in the enclosed format.
It is further advised that such unclaimed sum will not be appropriated/written back, in any circumstance, by the insurers.
This circular is issued with the approval of the competent Authority and comes into effect immediately.