(a) the mode of payment of insurance money by the Life Insurance Corporation of India;
(b) the number of cases came to light in which payment was not made to the insured
person in his life time or after his death during the last five years;
(c) the year-wise amount of unpaid money including interest thereon; and
(d) the manner in which the Government propose to utilise this amount ?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI BALASAHEB VIKHE PATIL)
(a): The Life Insurance Corporation of India (LIC) has informed that they make payment of
insurance money through account payee cheque in the name of the life assured/ the
nominee/claimant under the life insurance policy.
(b),(c)&(d): The LIC has informed that they make efforts to reach the policyholder through
letters and personal efforts. Inspite of this if no response is received from the policyholder or
his whereabouts are not known, the amount is transferred to the `Written Back Account` so
that as and when the policyholder approaches the LIC, the amount could be paid to the
policyholder. Even after making these efforts still if the LIC is unable to reach the
policyholder, the amount in the `Written Back Account` is credited to the Life Fund and the
benefit is given to the other policyholders until the amount is claimed by the policy holder.
Thus the amount due to policyholders will not get time barred simply because it is not
claimed by them in time.
The information for the last five years is as follows:
(Rs. in Crore)
Year No.of Claims Amount of claims Amount Paid Net written back written back to out of written amount transferred Life Fund back amount to Life Fund
1995-1996 20240 19.50 07.49 12.01 1996-1997 23054 28.43 09.43 19.00 1997-1998 18373 31.58 12.09 19.49 1998-1999 16975 29.13 13.65 15.48 1999-2000 18593 31.31 12.32 18.99