Nearly Rs 9,000 crore belonging to insurance policyholders and their families remains unclaimed with life and general insurance companies, often because nominees are unaware of existing policies, important documents have been lost, or policyholders failed to update their records.
According to information provided by the government in Parliament in March 2026, unclaimed insurance funds with insurers stood at Rs 8,973.89 crore as of February 28, 2026.
An insurance payout is classified as unclaimed when it remains unpaid for more than 12 months after becoming due. Although such funds may be transferred to the government's Senior Citizens' Welfare Fund after 10 years, policyholders, nominees and legal heirs can still claim the money for up to 25 years after the transfer.
Why Does Insurance Money Remain Unclaimed?
A major reason is that family members are often unaware that an insurance policy exists.
An ET report highlighted the case of a woman in Delhi who discovered her deceased father's life insurance policy only after finding an email from the insurer several months after his death. After locating the policy documents, the family successfully claimed nearly Rs 4 lakh in maturity benefits.
Industry experts say such situations are far more common than many people realise.
Shilpa Arora, Co-founder and Chief Operating Officer of Insurance Samadhan, told ET that while unclaimed insurance funds remain recorded as liabilities on insurers' books and are subject to regulatory monitoring, the larger issue is the lack of awareness among policyholders and nominees about benefits that rightfully belong to them.
According to Saurabh Vijayvergia, Founder and CEO of CoverSure, traditional life insurance products such as endowment, money-back and whole-life policies account for a substantial portion of unclaimed funds because these policies often remain active for 15 to 30 years.
Over such long periods, policyholders frequently change addresses, phone numbers, bank accounts or nominee details, making it difficult for insurers to locate beneficiaries.
Life Insurance Accounts for the Majority of Unclaimed Funds
Most unclaimed insurance money is associated with life insurance policies.
These funds may include maturity proceeds, death benefits, surrender values, survival benefits, premium refunds and reduced paid-up policy benefits that were never collected by beneficiaries.
In the case of health and general insurance, the reasons are often different.
Kunal Kabra, Founder of Kustodian.Life, told ET that while life insurance largely suffers from a lack of discoverability, general insurance cases often involve incomplete reimbursements, unclaimed refunds or claims that were never fully processed.
Rajat Dutta, Founder of Inheritance Needs Services, explained that many health insurance claims remain unresolved because policyholders fail to submit all required hospital documents after treatment, particularly when medical care is received outside their hometown.
How to Check for Unclaimed Insurance Money
Experts recommend first identifying all insurance policies associated with you or your family members.
Saurabh Vijayvergia advised people to review old policy documents, premium receipts, emails and bank statements, as insurance records are often spread across multiple locations and insurers.
Once policy details are identified, individuals can visit the insurer's website and use the "Unclaimed Amount" search facility by entering details such as the policy number, policyholder's name, PAN and date of birth.
Another option is to use the IRDAI Bima Bharosa portal, which provides access to unclaimed amount search pages for all registered life and general insurance companies.
If an unclaimed amount is located, claimants are generally required to provide KYC documents, bank account details and proof of ownership, nomination or legal heir status before the funds are released.
Steps to Prevent Insurance Benefits from Going Unclaimed
Experts emphasise that preventing insurance money from becoming unclaimed is usually much easier than recovering it later.
Policyholders should ensure that family members are informed about all insurance policies they hold. They should also appoint nominees, review nominee details regularly and keep contact information, email addresses, residential addresses and bank account details updated with insurers.
Maintaining all insurance documents in a single location and linking policies with PAN and Aadhaar can further simplify the process for nominees and legal heirs.
Parashuram Hallur, Founder and Chief Product Officer and Chief Growth Officer at Vealthx, told ET that one of the primary reasons insurance benefits remain unclaimed is that policyholders never inform their families about the policies they have purchased.
With nearly Rs 9,000 crore still awaiting rightful claimants, experts say that a simple review of existing policies and clear communication with family members can help ensure that benefits intended for loved ones do not remain unclaimed for years.
