The order said that insurance companies must get the details of such accounts and deposit the money before March next year.
All sums of money remaining unclaimed or left over for ten years as of September 30, 2017 will be transferred to Senior Citizen's Welfare Fund (SCWF), according to a new ruling by Insurance Regulatory and Development Authority.
The insurance watchdog has directed all insurance companies to collect details of such accounts and transfer the money into the fund before March next year, reports Financial Express. All
Senior Citizen's Welfare Fund Act (2015) which will be a part of the Finance Act, will be used for improving welfare of elderly citizens. Financial security, healthcare, nutrition, old age home will be provided for from this fund, reports the newspaper. Unclaimed money from small savings schemes, accounts of Employees’ Provident Fund, insurance companies and banks will have to be shifted to this fund. The fund will carry an interest, and be overseen by the committee.
Unclaimed deposits with insurance companies have doubled to Rs 10,527 crore from Rs 5,440 crore between March 31, 2015 and March 31, 2016.
The IRDAI norms has asked insurers to disclose information about any unclaimed amount above Rs 1,000 on their respective websites.The watchdog has also authorised insurers to show unclaimed amounts specified separately in their balance sheet under current liabilities and such amounts are governed by investment norms applicable to the funds.