Zee News: New Delhii: Monday,
February 11, 2013.
The Delhi
High Court has asked the Centre to respond to a plea seeking direction to set
up a mechanism for "utilising" unclaimed insurance money lying with
various companies.
Justice Rajiv Shakdher issued notices to the
Finance Ministry and the Insurance Regulatory and Development (IRDA) asking
them to file their reply by April 26 on the issue and for framing guidelines in
this regard.
The petition
filed by the Society for Consumers and Investors Protection, a registered
society of investors, claimed that over Rs 5,000 crore was lying with 24
insurance companies as "unclaimed deposits" till March 2012,
according to information received under RTI Act from the IRDA.
"The
total amount of unclaimed money of the policy holders as on March 31, 2012, is
Rs 4,453.27 crore in life insurance companies and Rs 679.25 crore in non-life
insurances and the regulatory authority has directed the companies that
unclaimed amount of policy holders will not be appropriated/ written back in
any circumstances by the insurers," the petition filed through advocate
Gautam Das said.
The
petitioner alleged that "they (ministry and IRDA) have not issued any
guidelines, instructions regarding use of the unclaimed policy money or even
the period after which the unclaimed money will no be refunded to the claimant
of the legalised deposits.
"It is
failure on the part of the insurance companies to play proactive role in
reaching out the legally competent claimants/legal heirs...," the
petitioner said and sought the court "to direct the respondents (finance
ministry and IRDA) to work out a proposal, how to utilise the unclaimed amount
after failure of genuine efforts in finding out the claimants within a specific
period."
The society
said countries like New Zealand and Canada have their legislations to protect
the unclaimed property of the public and sought a direction for such legislation.
The
petitioner suggested for a separate account named "National Unclaimed
Money Account" for this purpose and said "create a mechanism so that
the amount computed or documented be transferred to the account".