Onexamination of the data on Unclaimed Annuity amount lying with the LifeInsurers, it is observed that most of the amounts under unclaimedaccumulated/vested amounts for purchasing annuity are pending for the reasonsthat the matured / vested amount is less than the minimum purchase priceunder the Immediate Annuity product available with the concerned Life Insureror such amount is not able to generate the minimum annuity as prescribed inthe IRDAI (Minimum limits for annuities and other benefits) Regulations, 2015.
Therefore,keeping the interests of policyholders in view, it is decided to relax theprovisions of Regulation 24 of IRDA (Non-linked Insurance Products)Regulations,2013, and Regulation 28 of IRDA (Linked Insurance Products)Regulations, 2013, and to allow the Life Insurers to pay in lump sum, thevested/accumulated amount lying under the head ‘Unclaimed Amount’ to theconcerned policyholders / beneficiaries under any of the following conditionsand subject to the extant Tax law, as applicable:
- The accumulated amount lying unclaimed under the deferred pension policy is not sufficient to buy minimum annuity amount stipulated under the applicable extant regulatory provisions as mentioned above.
- The accumulated amount lying unclaimed under deferred pension policy is less than the minimum purchase price of the immediate annuity product available with the concerned life insurance company.
ThisCircular is issued in exercise of the powers vested under Section 14(2)(e) ofthe IRDA Act, 1999, Regulation 49 and Regulation 66 of the IRDA (Non-LinkedInsurance Products) & IRDA (Linked Insurance Products) Regulations,2013respectively and comes into force with immediate effect.