India's largest Life insurance company LIC of India had in response to an application filed under the RTI (Right to Information Act), stated that as many as 1,80,030 policies were lying unclaimed with the Corporation even after the maturity period.
The LIC, however, did not disclose the amount deposited against these policies by the policyholders.
Mr. P. Mohankumar, Principal Officer & Managing Director, Link - K Insurance Broker Co Ltd. “It's because the insured fails to keep his / her near & dear ones informed about his / her investment. Many people have no clue that they are a beneficiary or even that a life insurance policy exists. It does happen & fairly often,”
Citing an instance, he said a friend took a life cover for Rs. 30 lakh. He moved to the US, where he passed away. His wife relocated to India after his death. Many months later, when she went through the transactions in his bank pass book, she noticed that there were payouts towards insurance premium. The policy documents were missing. But somehow she managed to get the claim.
It may not always be easy, especially if the premium against any policy is discontinued continuously for 3 to 5 years. The policy lapses and can not be revived.
Such secrecy is uncalled for, especially when it is life insurance cover. In the case of a car accident or health services, ‘you are the claimant', but when it comes to life ‘you are not the one to pay the final bills. It will probably be your beneficiary.'
Emphasising the need for maintaining proper record of one's investment / Insurance and the need to keep close family members in the know of such investment / Insurance It is also important to know your agent.
Src: The Hindu
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