Insurance regulator Irda has asked all insurers to transfer the deposits of policyholders that have been laying unclaimed for over 10 years to the welfare fund by March 1.
“All insurers having unclaimed amounts of policyholders for a period of more than 10 years as on September 30, 2017 shall transfer the same to Senior Citizens’ Welfare Fund (SCWF) on or before March 1, 2018,” the Insurance Regulatory and Development Authority of India has said in a circular.
The directive comes under the Department of Economic Affairs accounting procedure for transfer of funds to SCWF.
Life, non-life and health insurance service providers will have to comply to the SCWF Rules, 2016 every year.
“The insurers shall make transfers to the consolidated fund of India on or before the 1st March, each year,” Irda said.
An interest bearing account in the public fund of the government, SCWF has been set up for promoting welfare of senior citizens through schemes such as old age pensions, long term savings instruments, promotion of health care and nutrition and affordable health care among others.