April 26, 2023

Reclaiming unclaimed LIC funds: A step-by-step guide

Summary

Imagine stumbling upon hidden cash you didn't even know existed! With LIC's official system, policyholders can check for unclaimed funds by following a simple step-by-step approach, potentially reclaiming overlooked assets. Just remember, all payments owed to policyholders through unclaimed amounts will be electronically routed to their respective bank accounts only as per RBI-approved methods.
Ever had the feeling that you have some spare change left under your couch cushions? Well, even in the world of finance, there's a couch-cushion equivalent, and it's called unclaimed funds. And this could be your Life Insurance Corporation (LIC) money linked to your life insurance policies. Parked in some unclaimed funds’ vault, it's the unclaimed cash that is meant to go to the policyholders or their nominees.
But here's the twist: At times, these funds linger untouched, collecting dust. This is either due to your oversight in claiming the money or because the intended recipient remains unaware of it. Imagine finding out you've got a stash of cash you didn't even know about! Nobody wants to leave money lying around, right?

Unclaimed funds transparency: Insurers' regulatory responsibility

As per the regulations, every insurer must exhibit details concerning any unclaimed amount exceeding INR 1,000 on their respective websites (this obligation persists even beyond 10 years). Furthermore, insurers are required to establish a mechanism on their websites, enabling policyholders or beneficiaries to confirm the unclaimed amounts owed to them. The Insurance Regulatory and Development Authority of India (IRDAI)‘s circular spells out these processes - from how unclaimed sums are paid to how communication is handled with policyholders, all the way to accounting methods to the utilisation of investment income, and other related procedures.
And under the Senior Citizens' Welfare Fund (SCWF) Act, if policyholders have funds lying untouched for over a decade, those funds have to be shifted over to the SCWF. The rules get into the nitty-gritty of who needs to send these funds to the SCWF and even lays down the ground rules for how it's all managed. This ACT requires each and every insurer to make public any unclaimed amounts of INR 1,000 or more on their own websites. This display requirement goes on, even after a whole ten years have passed. Not just that, they've got to set up a feature that lets you check whether you're owed any unclaimed amount.
The Draft Red Herring Prospectus (DRHP) has revealed that as of September 2021, LIC held unclaimed funds totalling approximately INR 21,539 crore, which also encompasses the interest accrued on the outstanding unclaimed sum. These unclaimed funds have just been waiting for their owners to come knocking. The forgotten coins of yesteryears hiding in the nooks and crannies of your financial history must be recovered. You need to crack the code and reclaim what's rightfully yours.

Unclaimed LIC funds recovery: A simplified step-by-step approach

So, let's dive in and rescue your funds. LIC has established an official system on its website for policyholders to check if they possess any unclaimed or outstanding policy dues. Here’s what you need to do:

First, you need to check if you have any unclaimed LIC funds. For this:

  • Access the LIC website.
  • Scroll down to the bottom of the page.
  • Click on “Unclaimed Amounts of Policyholders” among the links at the bottom. This action will redirect you to LIC's unclaimed policy page.
  • Provide the required details:
  • LIC policy number
  • Policy-holder's name - mandatory
  • Date of birth (dd/mm/yyyy format) - mandatory
  • PAN card
     5. Click on “Submit” after filling in the details. The screen will then display the details regarding any unclaimed amount associated with your policies, if applicable.
LIC Login Unclaimed Amounts of Policyholders ### **Once it is established that you have unclaimed funds resting with the LIC:** 
    6. Download the LIC app from the Google Play Store, contact the insurer's phone helpline or visit the nearest LIC office.

    7. Provide the necessary policy details, upload your documents, and complete the know your customer (KYC) process.

    8. Validate your identity.

    9. Witness the release of your unclaimed LIC funds!
But do not forget, all payments due to policyholders as unclaimed amounts will be routed through their respective bank accounts using electronic modes approved by the RBI.

Unclaimed funds: Reclaim, invest, and secure your financial future

So, there you have it. Whether you left your money in the LIC coffers unintentionally or just did not know about it, it's time to act. With a few simple steps and a little effort, you can navigate through the process, connect with the right channels, and ensure that these funds find their way back to you - where they rightfully belong. Don't let your money sit idly, any longer. Embark on this journey of claiming your unclaimed LIC funds, and then consider the possibilities for investment. By acting today, you can not only recover your funds but also potentially grow them into something even more substantial. Unlock the true potential of your unclaimed money and make your financial future brighter.

Disclaimer

The investment options and stocks mentioned here are not recommendations. Please go through your own due diligence and conduct thorough research before investing. Investment in the securities market is subject to market risks. Please read the Risk Disclosure documents carefully before investing. Past performance of instruments/securities does not indicate their future performance. Due to the price fluctuation risk and the market risk, there is no guarantee that your personal investment objectives will be achieved.

Never miss a trading opportunity with Margin Trading Facility

Enjoy 2X leverage on over 900+ stocks

Upstox Margin Trading Facility
Apple Logo
Downloadlogo
iOS App
Google Play Logo
Downloadlogo
Android App

RELATED ARTICLES

Sukanya Samriddhi Yojana (SSY) 2023 - Interest Rate, Details, Schemes, & Benefits

Sukanya Samriddhi Yojana, commonly known as SSY, is a scheme for girls launched to better their futures. This scheme was launched under the campaign Beti Bachao, Beti Padao, which was announced in 2015 by the Prime Minister of India. It is a scheme that has been sponsored by the government for the betterment of the life of girls in India. The program was launched to ensure a good future for the female child and allows parents to construct a fund for their girl kid's future schooling and marriage expenditures. This child insurance plan helps the parents or the guardians in giving financial security to the girl child 10 or below. Under the Sukanya Yojana, a girl's account can be opened in any bank, whether public or commercial, for a period of 21 years. The total term for investment is 21 years, which starts from the date the account is opened. It is a deposit system designed specifically for girls. This program was created to ensure that the future of the girls is secure financially.

NPS Vs PPF - Which is Better & Difference

Retirement can be the best or worst time of your life, depending on how well-prepared you are for it. On the one hand, you will have enough time on your hands to do whatever you want to do, without having to worry about work. On the other hand, you no longer have a regular income from work, which may mean not having the necessary money to meet all of your requirements. Add to that inflation and increasing life expectancy, which can continue for a long time. This is why retirement planning is so important. Unless you are eligible for a pension when you stop working (and sometimes even if you are), you will have to invest in retirement schemes to live out your golden years comfortably without stress. That’s why the government of India has made retirement savings possible through specific schemes they offer. The two most essential schemes among these are the [Public Provident Fund](https://upstox.com/saving-schemes/public-provident-fund-ppf-interest-rate/) or PPF and the National Pension Scheme or NPS. Moreover, these schemes come with tax benefits that make them more attractive to citizens. They are covered under Section 80C of the Income Tax Act, meaning you can claim a tax benefit of up to INR 1.5 lakhs by investing in either product. However, that’s where the similarity ends. They are very different in terms of tenure, returns, lock-in periods, and maturity amount usage. This article will explain the features of both these schemes and their similarities and differences in more detail.

EPF Vs PPF - Difference, & Which is Better to Invest

Saving money is an essential aspect of financial planning. However, with various saving schemes available in the market, choosing the right one can be challenging. Two popular saving schemes are EPF (Employee Provident Fund) and PPF (Public Provident Fund). This article discusses the difference between EPF and PPF and which is better for your financial goals. EPF and PPF are saving schemes with unique features and benefits. While EPF is suitable for salaried employees looking for long-term retirement planning and higher returns, PPF is an option for all Indian citizens with short-term financial goals who want to be disciplined about savings. Therefore, understanding the differences between EPF and PPF and evaluating your financial goals before choosing a suitable scheme is essential.

Post Office Sukanya Samriddhi Yojana 2023 - Interest Rate, Details, & Login

Sukanya Samriddhi Yojana (SSY) is a small savings scheme backed by the government for the financial help of the girl child. Sukanya Yojana comes under the scheme [Beti Bachao, Beti Padhao Yojana](https://upstox.com/saving-schemes/beti-bachao-beti-padhao-yojana-bbbp-scheme/), and the account can be easily opened by parents of a girl child below the age of 10. The government of India launched Sukanya Yojana on 22nd January 2015. Simply put, this is a saving strategy for young girls to avail themselves of benefits for their marriage or education. The limit set for investment in this account starts from a minimum ₹250 to ₹1.5 lakh maximum. The government of India provides a 7.6% interest rate on investment through this scheme. Tax exemption is another benefit one may get for investing in this scheme. Sukanya Samriddhi Account matures when the girl attains the age of 21 or when she gets married. For higher education, 50% of the total amount in the account can be withdrawn at the age of 18 years.