Close to Rs 15,167 crore of policyholders’ money is lying unclaimed with life insurers today. Insurance is bought as a protection tool to be put to use in times of need. However, purchasing and paying the premium goes waste owing to such misses. Policyholders need to keep the following points in mind ensuring that their insurance policies do not go unclaimed.

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Update address, bank details
It is important to be careful when entering bank details, address, nominee and other communication details at the time of policy purchase. It is more important to review the policy documents and inform the insurer in case there is any change in the information. Not updating these details may result in your family missing out on the claims payment.

Inform nominees and family members
Time and again there are situations wherein family members are unaware of insurance policies purchased by the policyholder and remain deprived of insurance benefits. To avoid such situations, individuals should inform the nominee or the closest family member of the policy and relevant details, such as the insurance company’s name, terms of insurance and broker information, if any, should be kept handy with near and dear ones.

Maintain policy documents carefully
At the time of claim, in addition to policy details, documents such as Aadhaar, PAN card, etc, are required. Make a separate folder containing these details that is easily accessible to you and your family members. While hard copy is advisable, in this day and age, one can also maintain an excel sheet listing policy details and share it with the next of the kin.

Know the way out
To know if your policy is unclaimed, visit the company’s website. A separate window of ‘unclaimed amount of policyholders’ is provided to know any unclaimed amount. Enter the policy number, PAN, date of birth and Aadhaar number of the policyholder. One can always visit the branch or call customer care for policy details and fill up a cheque re-issuance form along with the NEFT details for claiming the money. One can also reach out to his/her agent for help.

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Ten years after the claim date, the unclaimed amount is transferred to the Senior Citizen’s Welfare Fund (SCWF). It can be claimed till 25 years after the date of transfer.

By: Parag Raja
(The writer is chief distribution officer, Aditya Birla Sun Life Insurance)

Source: DNA Money