LIC IPO: The file draft prospectus for the IPO of Life Insurance Corporation of India (LIC) shows that the government-owned has an unclaimed fund of Rs 21,539 crore as of September 2021. LIC had recently filed a draft prospectus with market regulator SEBI, in which the government has proposed to sell its 5 per cent stake in the company through an offer for sale (OFS).
Unclaimed amount was Rs 18,495 crore till March
According to the draft prospectus, LIC had unclaimed funds of Rs 18,495 crore at the end of March 2021 and Rs 16,052.65 crore at the end of March 2020. At the same time, the total unclaimed fund at the end of March 2019 was Rs 13,843.70 crore. Unclaimed funds also include the interest earned on that money.
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how to check your amount
Policyholders can check the unclaimed and outstanding amount (which is updated on a half yearly basis) by visiting the link on LIC’s website. They will have to fill the details of LIC policy number, name of the policyholder, date of birth and PAN card to get this information.
Insurance companies have to give information of more than Rs 1,000
As per this, every insurance company is required to display information about any unclaimed amount of Rs 1,000 or more on their respective websites. The website also provides facility to the policyholders or beneficiaries to verify the outstanding amount. The unclaimed amount circular of the Insurance Regulatory Authority of India (IRDAI) decides the procedure for payment of unclaimed amount, information to policyholders, accounting, utilization of investment proceeds etc.
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Dealing with this fund as per SCWF rules
As per the Unclaimed Amount circular, the unclaimed corpus of the policyholders for more than 10 years is treated as per the SCWF Rules. “All insurance companies should follow the accounting procedure laid down by the Budget Division, Department of Economic Affairs, Ministry of Finance, for transfer of unclaimed amounts to SCWF,” it said.
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