India: Karnataka HC Asks IRDA to Shift Unclaimed Claim Amounts to Welfare

The Karnataka HC, answering to a petition on use of unclaimed claim amounts, asked the Regulatory and Development Authority (IRDA), to transfer the said amounts to Senior Citizens’ welfare funds. The fund referred to here is the Senior Citizens’ Welfare Fund set up under Finance Act of 2015. The petitioners alleged that numerous insurance companies had collected premium sums from a significant number of Indian residents, and that unclaimed policies/amounts remained after the maturity period or death of the persons insured. The petition had requested the court to formulate a policy for disbursement of the claim amounts. It was argued that unclaimed policies amounting up to Rs 15167 crore are lying with various insurance companies, and the same needs to be used for welfare. The court has also mandated that the Authority ensures that insurance companies abide by their Master Circular and are also required to report to the court periodically on the progress.