LIC Sits On Over Rs 21,500 Crore Unclaimed Funds, IPO Papers Show

New Delhi: State-owned insurance coverage behemoth LIC had unclaimed funds to the tune of Rs 21,539 crore as of September 2021, in line with draft prospectus filed for IPO with market regulator SEBI.This consists of curiosity earned over the excellent unclaimed quantity.As per the Draft Red Herring Prospectus (DRHP) filed by the Life Insurance Corporation of India (LIC), the unclaimed quantity was at Rs 18,495 crore on the finish of March 2021 and Rs 16,052.65 crore on the finish of March 2020.The complete unclaimed quantity stood at Rs 13,843.70 crore on the finish of March 2019.Every insurer is required to show details about any unclaimed quantity of Rs 1,000 or more on their respective web sites (to proceed even after completion of 10 years) and a facility is to be offered on the web site to allow policyholders or beneficiaries to confirm unclaimed quantity on account of them.Further, it stated, the unclaimed quantities round by Insurance Regulatory and Development Authority of India (IRDAI) prescribes the procedures referring to the mode of fee of the unclaimed quantity, communication to the policyholders, accounting, utilization of funding earnings and so on.The SCWF Act mandates the switch of unclaimed quantities of the policyholders held past a interval of 10 years to the Senior Citizens' Welfare Fund (SCWF).The Senior Citizens' Welfare Fund Rules, 2016 (SCWF Rules) specifies the entities which can be required to switch the quantities into the SCWF and comprises provisions pertaining to administration of the SCWF, it stated.The Unclaimed Amounts Circular prescribes that the unclaimed quantity, on completion of 10 years, be handled in accordance with SCWF Rules, it stated."All insurers must adhere to the accounting procedure issued by Budget Division, Department of Economic Affairs, the Ministry of Finance for transfer of the unclaimed amounts into the SCWF," it stated.  Every monetary yr the method laid down within the SCWF Rules learn with the accounting process for switch of the funds into the SCWF have to be adopted, it stated, including all insurers should make transfers to the SCWF on or earlier than March 1 yearly.