IRDAI issues Circular on Unclaimed Amount of Policyholders

Jul 20, 2018 | by Avantis RegTech Legal Research Team


The Insurance Regulatory and Development Authority of India (IRDAI) has issued a Circular dated July 11, 2018 on Unclaimed Amount of Policyholders. Vide the Circular; IRDAI has directed the following to all Life/General/Health Insurers:

·         Insurers need not disclose the amounts transferred to the Senior Citizens’ Welfare Fund (SCWF) as contingent liability as a part of their financial statements from financial year 2018-19 onwards.

·         IRDAI vide its previous Circular dated July 25, 2017, had mandated to transfer the Unclaimed Amount of Policyholders to SCWF Account after a period of 10 years. Accordingly, an intimation of transfer of amount to SCWF Account must be filed with IRDAI in the prescribed format provided in the Circular, within 7 days from the date of transfer.

The IRDAI has directed Insurance Companies to intimate about the transfer of Unclaimed Amount of Policyholders to SCWF Account within 7 days of the transfer.

Further, Insurers are no longer required to disclose the amounts transferred to the SCWF as contingent liability as a part of their financial statements from financial year 2018-19 onwards.

[Ref. No:IRDA/F&A/CIR/MISC/105/07/2018]

 

URL: https://www.irdai.gov.in/ADMINCMS/cms/whatsNew_Layout.aspx?page=PageNo3502&flag=1


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