Unclaimed and outstanding LIC claims surge 83% in 5 years: FinMin – CNBC TV18

Unclaimed and outstanding maturity claims with Life Insurance Corporation (LIC) have risen by 83% in the last five years, the Ministry of Finance (FinMin) reported in Parliament. The claims jumped from ₹480.78 crore in FY19-20 to ₹880.93 crore in FY23-24.

However, LIC has reported a positive trend in unclaimed death claims.

These claims have declined sharply, from 89 in 2019, valued at ₹2.02 crore, to just 10 claims in 2023.

The unclaimed and outstanding maturity claims figures over the years are as follows:

• ₹652 crore in FY21-22
• ₹897 crore in FY22-23
• ₹815 crore in FY23-24

What are unclaimed and outstanding deposits?

Unclaimed and outstanding deposits refer to amounts that remain unpaid due to various reasons, such as the policyholder or nominee not claiming them, lack of proper communication, or unawareness of the claim process.

In the context of LIC, this typically involves policyholders failing to claim the maturity amount or death benefit after the policy term ends or after the policyholder’s death.

Unclaimed claims can accumulate over time and remain outstanding, often due to missing beneficiary information or delay in initiating the claim process.

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