Unclaimed insurance funds to go to SCWF

Source: The Hindu

Insurers to make transfers by March 1

The Insurance Regulatory and Development Authority of India (IRDAI) has directed all insurers having unclaimed amounts of policyholders for a period of more than 10 years, as on September 30, 2017, to Senior Citizens’ Welfare Fund (SCWF) by March 1 this year.

Accounting procedure

In doing so, the insurers must adhere to the accounting procedure for transfer of unclaimed amount into the Fund issued by the Department of Economic Affairs, IRDAI said in a circular to all life, non-life and health insurers.

Insurers, according to the regulator, need to make transfers to the Consolidated Fund of India on or before March 1 each year.

Following an announcement in the Budget Speech 2016, the SCWF was establishedfor promoting the welfare of senior citizens. Beyond a specified period, unclaimed amounts in small savings and other savings schemes of the Centre, in PPF, EPF, bank and Coal Mines PF accounts as well as life and non-life insurance schemes need to be transferred to the SCWF.

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