According to government information shared in Parliament, ₹8,974 crore remained unclaimed with life and general insurance companies as of February 28, 2026. Policyholders and nominees may be unaware that insurance money is lying unclaimed with insurers, from maturity proceeds and death benefits to premium refunds. The money remains out of reach simply because policy details are lost, nominees are unaware of the cover, or records have not been updated. As reported by Business Standard, unclaimed insurance money can still be recovered if the policyholder, nominee or legal heir is able to establish the claim with the insurer.
Insurance proceeds are classified as unclaimed if they remain unpaid for more than 12 months after they become due. This could include a life insurance policy that has matured, a death claim, a surrender value, a premium refund or even an unsettled health insurance claim. According to the report, life insurance accounts for the bulk of the unclaimed amounts because these policies typically run for 15 to 30 years. During such long tenures, policyholders often change their address, mobile number, email ID or bank account without informing the insurer. In many cases, nominees are unaware that a policy even exists.
Unclaimed insurance money is not limited to death claims and includes: maturity proceeds from traditional life insurance policies, death benefits payable to nominees, surrender value after a policy is discontinued, survival benefits under money-back plans, premium refunds arising from policy cancellation or excess payment, reduced paid-up benefits on lapsed life insurance policies, health insurance claim settlements awaiting documentation, general insurance claim payments and premium refunds. As reported by Business Standard, group insurance provided by employers may also remain unclaimed if employees or their families are unaware of the cover.
To check for unclaimed insurance money, policyholders should first identify all insurance policies held by themselves or deceased family members through old policy documents, premium payment receipts, bank statements, email records, SMS alerts from insurers, and employer-provided insurance records. According to the report, the Insurance Regulatory and Development Authority of India (Irdai) has directed insurers to publish details of unclaimed amounts of ₹1,000 and above through searchable online facilities. The Irdai's Bima Bharosa portal provides links to unclaimed amount search pages of all registered insurers, requiring details such as policy number, policyholder's name, date of birth, PAN, registered mobile number or email address.
Insurance proceeds that remain unclaimed for over 10 years are transferred to the Senior Citizens' Welfare Fund (SCWF). However, this does not mean the money is forfeited, as the rightful policyholder, nominee or legal heir can continue to approach the insurer and seek payment after establishing ownership. Financial planners recommend keeping policy information organized, ensuring family members know where insurance documents are stored, maintaining a consolidated record of all insurance policies, and periodically informing family members about existing insurance cover. As reported by Business Standard, with thousands of crores still awaiting their rightful owners, checking whether any insurance proceeds are pending has become an important part of household financial planning.
