Rs 18560 cr unclaimed deposits lying in Banks, Insurance Companies
24 March, New Delhi
There were more than Rs 18560 crores lying unclaimed deposits in Banks and Insurance Companies. This was stated by Santosh Kumar Gangwar, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha today.
According to the reply, as on December 31, 2015, the total unclaimed amount in the banks was Rs 6835.40 as against the amount of Rs 4998.27 last year.The details of unclaimed amount reported by the life and non-life insurance companies were Rs 6835.40 crores (Life Insurers) and Rs 1198.28 (Non Life Insurers).Section 26A of the BR Act, 1949, empowers the Reserve Bank of India (RBI) to establish “The Depositor Education and Awareness Fund” (the “Fund”).
Under the provisions of this section the amount to the credit of any account in India with any bank which has not been operated upon for a period of ten years or any deposit or any amount remaining unclaimed for more than ten years shall be credited to the “Fund”, within a period of three months from the expiry of the said period of ten years.
The depositor, however, is entitled to claim from the bank his deposit or unclaimed amount or operate his account after the expiry of ten years, even after such amount has been transferred to the “Fund”.
The bank would be liable to pay the amount to the depositor/claimant and claim refund of such amount from the “Fund”.In terms of para 9 of the Depositor Education and Awareness Fund Scheme, the “Fund” shall be utilised for promotion of depositors’ interests and for such other purposes which may be necessary for promotion of depositors’ interest as may be specified by RBI.
The Limitation Act, 1963 provides a time limit of 3 years for claim due to a policyholder under an Insurance Policy. Insurance Regulatory and Development Authority of India (IRDAI) has also issued directions in this regard to all insurers to bring better governance, transparency and smooth transfer of the amount due to the policy holder.
The directions of IRDAI cover the entire gamut of unclaimed amount including any amount payable to policyholder as death claim, maturity claim, survival benefit, and premium due for refund, premium deposit not adjusted against premium and indemnity claims etc. which have remained unclaimed beyond six months from the due date for settlement of the claimed amount.