LIC Reports Over Rs 880 Crore in Unclaimed Maturity Amounts
Life Insurance Corporation of India (LIC) has reported unclaimed maturity amounts of Rs 880.93 crore for the financial year 2023-24, Parliament was informed on Monday. Minister of State for Finance, Pankaj Chaudhary, shared the information in a written reply to the Lok Sabha.
According to Chaudhary, a total of 3,72,282 policyholders did not claim their maturity benefits during FY24. In comparison, the previous year saw Rs 815.04 crore unclaimed by 3,73,329 policyholders. Additionally, 10 death claims worth Rs 14 lakh remained unclaimed in FY24.
LIC’s Measures to Address Unclaimed Claims
To reduce the number of unclaimed and outstanding claims, LIC has implemented various measures. These include:
- Advertising through print and digital media
- Radio jingles to inform policyholders about claiming their dues
- Sending reminder letters via ordinary or speed post, emails, and SMS where contact details are available
The claim settlement process has also been simplified, requiring only a valid NEFT account for settlement. LIC agents and development officers are actively following up with policyholders to ensure claims are settled promptly.
Foreign Exchange Reserves Decline
In response to another question, Chaudhary said that India’s Foreign Exchange Reserves (FER) fell by 2.63% for the week ending November 15, 2024, compared to the previous week. He noted that the steepest decline in the last 20 years occurred during the week ending October 24, 2008, when FER dropped by 5.65%.
Chaudhary emphasized that the value of the Indian Rupee (INR) is market-driven and influenced by factors such as:
- Dollar index movement
- Interest rate levels
- Crude oil prices
- Current account deficit
The Reserve Bank of India (RBI) intervenes in the forex market only to curb excessive volatility in the INR.
RBI Cancels Registrations of 5,728 NBFCs and ARCs
Chaudhary also informed that the RBI has cancelled the Certificate of Registration (CoR) of 5,728 Non-Banking Finance Companies (NBFCs) and Asset Reconstruction Companies (ARCs) as of June 30, 2024. Currently, 25 deposit-taking NBFCs remain registered with the RBI.
RBI Guidelines on Loan Recovery
Addressing concerns about borrower harassment by recovery agents, Chaudhary highlighted the RBI’s strict guidelines. These include:
- Informing borrowers about all fees and charges
- Releasing securities upon loan repayment
- Prohibiting undue harassment, such as persistent calls at odd hours or using muscle power for loan recovery
The RBI ensures compliance with these guidelines during supervisory assessments. Any violations are addressed through corrective measures or enforcement actions as per regulations and law.
