Insurers Transferred Rs1,723.20 Crore Unclaimed Amount to Senior Citizens' Welfare Fund
Moneylife Digital Team 08 August 2022
During the past five years, life and non-life insurance companies have transferred Rs1,723.20 crore to the Senior Citizens' Welfare Fund (SCWF) as per the provisions of Senior Citizens' Welfare Fund Rules, notified by the government of India and a master circular issued by the Insurance Regulatory and Development Authority of India (IRDAI), the Lok Sabha was informed.
In a written reply, the minister of state for finance says, "All insurers, who have unclaimed amounts of policyholders for a period of more than ten years as on 30 September 2017 are required to transfer the same with interest to the SCWF every year. Further, even after transfer of the unclaimed amounts to the Fund, a policyholder or claimant continues to be eligible to claim the unclaimed amounts under their respective policies for a period of up to 25 years."
Sumalatha Ambareesh, a member of Parliament (MP), has asked for the details, including the total amount transferred from IRDAI to SCWF and the utilisation of the funds by SCWF. 
During FY17-18, insurers transferred Rs81.62 crore to SCWF. It jumped to Rs398.94 crore the following year. However, during FY19-20, it fell to Rs225.05 crore. In FY20-21, the amount increased to Rs388.89 crore and jumped 61% to Rs628.69 crore in FY21-22, taking the total for the past five years to Rs1,723.20 crore.
SCWF, which works under the ministry of social justice and empowerment, utilises the money for various schemes and initiatives for senior citizens. The ministry has spent Rs245.68 crore on four schemes and purchasing electric-operated golf carts for senior citizens and airports managed by the Airports Authority of India (AAI), the reply given in the lower house shows.
The department of social justice and empowerment spent Rs16 crore for the scheme for other vulnerable groups, Rs159.51 crore for Rashtriya Vayoshri Yojana (RVY), Rs49.19 for Elderline, a National Helpline for Senior Citizens and Rs20 crore towards promoting silver economy—senior-care aging growth engine (SAGE).
4 months ago
Spending such unclaimed amount for purchasing the Golf Carts is rather a strange way to utilise the money . Are there no other options available to use this money for the sr citizen needing help
4 months ago
What happens with the money in the fund and how is it being used and who decides as to how it will be used.Also IRDAI need to address the present issues with the insurance companies since they take a long time to address.I have initially followed up with Reliance nippon since they delayed the redemption by two months and since they did not reply I addressed it to IRDAI but IRDAI repeated ly have been asking reliance nippon to address it for the past two months but they are not bothered to reply to them.This is the sort of organisations we have and also more powers should be given to IRDAI to punish the organisation if they do not reply which is lacking.
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