Question : UNCLAIMED INSURANCE DUES

MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI S.S. PALANIMANICKAM)

(a) As reported by LIC, the unclaimed insurance dues in the last three years were as under :-

Year	Amount in crore (Rs.)

2002-03	37.58
2003-04	37.63
2004-05	71.22

(b) LIC has informed that unclaimed insurance dues are treated as income and transferred to the Life Fund, which is invested as per IRDA (Investment) Regulations, 2000. This Fund is valued at the end of every year to calculate the annual valuation surplus which is distributed between policyholders and shareholders in the ratio of 95 to 5 under Section 28 of the LIC Act, 1956. Whenever policyholder or claimants are traced out, the amount is paid to them out of Life Fund, after proper verification.