Depositing money is good idea but what will you do if there are many unclaimed deposits? This is the question that Government of India is facing and that is one of the reasons that Indian Government took decision. As there are many unclaimed deposits in EPF, banks and savings schemes. As a result insurance regulator has made new rules.
Unclaimed deposits to go to SCWF
In fact insurance regulator already directed insurance companies to deposit these unclaimed money in SCWF. Here SCWF full form is Senior Citizen’s Welfare Fund. However all deposits will not go to that fund.
As insurance regulator clearly stated that only unclaimed deposits of more than 10 years are to be taken in to consideration. So if you (policy holders) did not claim your deposits for 10 plus years before 30th September 2017 then money will go to Senior Welfare fund account.
Senior Citizens Welfare Fund
Indian Government came up with Senior Citizens Welfare Fund Act 2015. Moreover this act is part of Finance Act. According to this act transfer of unclaimed amounts from all accounts will go to SCWF account. This amount helps in funding many senior citizens welfare schemes.
While they include financial security, old age homes, health care, nutrition or any other purposes related to senior citizens. There would be rate of interest on this fund amount as well. However Ministry of Finance determines this rate of interest and notifies every person about this.
Transfer of funds
Government of India made rules about transfer of unclaimed deposits as well. And as per instructions of insurance regulatory these transfers happen on net basis. It means that unclaimed deposits minus claims accepted.
Committee that takes care of this welfare has officials from Ministry of Social Justice and Empowerment, Ministry of Health and Family Welfare and Department of Financial Services among other officials.
You can also know about how to get UAN number using your PF number here. Getting your UAN number is also an easy task.
Notifications to policy holders
Before insurance companies transfer unclaimed deposits to Senior Citizen Welfare Fund they have to send notifications to all policy holders. On other hand insurance holders get 60 days of time to claim insurance. In case they claim insurance in these 60 days then their accounts will not come under unclaimed deposits.
But if no person claims unclaimed deposits then transferring of unclaimed deposits scheme comes in to action. Furthermore authorities clearly asked all insurance companies to notify every person about their unclaimed funds.
As a result notifications will be there on notice boards of insurance offices. In addition there should be notifications of these unclaimed funds on websites of these companies. In this manner people or policy holders can claim funds or their unclaimed insurance deposits. Besides these deposits can be either in EPF or Employees Provident Fund account or small savings schemes or even in banks.
Insurance regulatory also made it compulsory for all insurers to display information about unclaimed amount. While this amount must be only above Rs. 1, 000. This notification has to be there on their websites as well.
Information to policy holders
Insurers must provide information to policy holders as well as beneficiaries about their policy. These notifications include changes or updates or even maturity details. Whereas notifications can be through email or SMS. Or they can opt for other modes of communication if required.
Thus in this way people have idea of unclaimed deposits. Policy holders also come to know about their savings and changes that happen to their savings in various institutions or schemes. However as policy holder you should also keep track of things or how insurers manage your savings so that you know about your deposits.
Also know how to transfer EPF funds online as you may have to reapply of EPF transfer in required.