Master Circular Unclaimed Amounts of Policyholders

E,i ,iitlMN ndai Ref.: IRDA/F&A/CIR/Misc/173/07 /2017 All Life/ General/ Health Insurers '4 Hd1 l4 irnr fe4 R'-41 ~ cfi 3ITT fe4 cfi lfl ~ INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA Date:25.07.2017 Master Circular: Unclaimed Amounts of Policyholders The Authority has issued various directions regarding the Unclaimed Amounts of Policyholders from time to time. All t~e earlier directions are now being consolidated and issued in the form of a Master Circular which is attached herewith. The Government of India has brought in the Senior Otizens' Welfare Fund Act, 2015 (SCWF) as a part of the Finance Act, 2015, which mandates the transfer of Unclaimed Amounts of Policyholders to the Fund (SCWF) after a period of 10 years. It has also notified a set of Rules under the SCWF, which specify the entities that are required to transfer the amounts to the Fund and the administration of the Fund. The Master Circular also provides for convergence in compliance taking into account the SCWF Act and the Rules notified thereunder. All insurers having unclaimed amounts of policyholders for a period of more than 10 years as on 30th September, 2017 need to transfer the same to the Senior Otizens' Welfare Fund (SCWF) on or before 1st March, 2018. Insurers would need to get the details of the account as well as the manner in which they are required to transfer the unclaimed amounts, from the Department of Financial Services, Ministry of Finance, Govt of India. Thereafter, every financial year the process laid down in the SCWF Rules, 2016 (copy enclosed) shall be followed as regards transfer of the unclaimed amounts of policyholders. ll"ftJ>;PPlcR', cftmr~, ~, ~-~00004. ~ (f): 91-040-2338 1100, ~: 91 -040-6682 3334 ll ( ~ i ,___ h~ (Dr MarfitaSuri) . ; CGM & HOD-F&A Parisharam Bhavan, 3rd Floor, Basheer Bagh, Hyderabad-500 004. India. Ph.: 91-040-2338 1100, Fax: 91-040-6682 3334 [To Be Published in the Gazette of India, Extraordinary, Part II, Section 3, Sub Section (i)] Government of India Ministry of Finance Department of Economic Affairs New Delhi, the 18th March,2016 NOTIFICATION G.S.R (E) In exercise of the powers conferred by section 128 of the Finance Act, 2015, 20 of 2015 the Government hereby makes the following rules, namely:- 1. Short title, extent and commencement.- (1) These rules may be called Senior Citizens’ Welfare Fund Rules, 2016 (2) They shall come into force from the date of their publication in the Official Gazette. 2. Definitions.- (1) In these rules, unless the context otherwise requires,-- (a) “Act” means the Finance Act, 2015. (b) “Government” means the Government of India. (2) Words and expressions used in these rules and not defined but defined in the Act shall have the meanings respectively assigned to them in the Act. 3. Establishment of Fund.- (1) The Central Government hereby establishes a Fund to be called the Senior Citizens Welfare Fund for promoting the welfare of the Senior Citizens and for such other purposes as specified in Chapter VII of the Act. (2) The Senior Citizens Welfare Fund shall be an interest bearing account in the Public Account of the Union of India and shall be administered by the Committee. (3) Every institution shall transfer the unclaimed amounts, including those under the following schemes, to the Fund namely:- (a) Small savings and other savings schemes of the Central Government including the Post Office Savings Accounts, Post Office Recurring Deposit Accounts, Post Office Time Deposit Accounts, Post Office Monthly Income Accounts, Senior Citizens’ Savings Scheme Accounts, Kisan Vikas Patras, National Savings Certificates (all issues), Sukanya Samriddhi Accounts and discontinued Small Savings Schemes; (b) Accounts of Public Provident Funds under the Public Provident Fund Scheme, 1968 maintained by the Institutions concerned; and (c) Accounts of Employees’ Provident Fund under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. (4) Every Institution shall prepare list of unclaimed amounts lying as unclaimed deposits in the accounts and notify to the public in the manner provided under rule 7. (5) All unclaimed amounts, referred to in sub-rule (2), shall be transferred by the institution to the Fund within one year from the date of notification of these rules in the Official Gazette: Provided that the period so specified may be extended by such further period or periods, as the Central Government in the Ministry of Finance may deem fit, on a request for grant of such extension by the institution. (6) The Institution shall identify the unclaimed amounts on annual basis and make transfers to the Fund on or before the 1st day of March, each year. (7) The transfers by the Institutions shall be made on a net basis, namely, the unclaimed deposits minus the claims accepted in accordance with the law for the time being in force, of the accounts whose balances have already been transferred to the Fund. 4. Administration of Fund.- (1) The nodal Ministry for the administration of the Fund shall be the Ministry of Social Justice and Empowerment. (2) The Fund shall have its secretariat located in the Ministry of Social Justice and Empowerment. (3) The Fund shall be administered by a Committee consisting of - (a) The Secretary in the Ministry of Social Justice and Empowerment who shall be the ex-officio Chairperson; (b) An official not below the rank of a Deputy Secretary to the Government of India, to be nominated by the Department of Financial Services – Member; (c) An official not below the rank of a Deputy Secretary to the Government of India, to be nominated by the Ministry of Health and Family Welfare – Member; (d) An official not below the rank of a Deputy Secretary to the Government of India, to be nominated by the Ministry of Rural Development – Member; (e) An official not below the rank of a Deputy Secretary to the Government of India, to be nominated by the Ministry of Housing and Urban Poverty Alleviation – Member; (f) An official not below the rank of a Deputy Secretary to the Government of India, to be nominated by the Ministry of Labour and Employment-Member; (g) Officials not below the rank of a Deputy Secretary to the Government of India, to be nominated by the Ministry sponsoring the proposal and by other Ministries concerned with the specific proposal; (h) Financial Adviser, Ministry of Social Justice and Empowerment (i) An official, not below the rank of Joint Secretary to the Government of India, to be, nominated by the Ministry of Social Justice and Empowerment – Member Secretary; (4) The Committee shall meet at least twice a year. (5) The Committee shall take decision as to the utilisation of the amount in the Fund for the purposes specified in the rule 6. (6) The Committee shall provide Ministry-wise details of budgetary allocation required for the following financial year, to the Central Government in the Ministry of Finance: Provided that the allocations shall be made by the Ministry of Finance, keeping in view the estimated and absorptive capacity for the authorised purpose and to ensure the perpetuity of the Fund. (7) The Committee may regulate its rules of business, in addition to, and without prejudice to anything provided under these rules, for the conduct of its business. 5. Rate of interest.- The eligible rate of interest for the money lying in the Fund shall be determined and notified by the Central Government in the Ministry of Finance under sub-section (5) of the section 124 of the Act, on an annual basis. 6. Utilisation of Fund.-