Skip to content
Got a notice? Emergency response

Investments

Claiming an Indian life insurance policy nobody has collected

A parent had a policy, or you took one out before you moved, and nothing was ever paid because the insurer could not reach anyone.

Something was payable under an Indian life policy and it never reached the person entitled to it. A maturity that fell due while the family had moved on, a death claim nobody filed because nobody knew the policy existed, a survival benefit returned unpaid to an address long since left. The money is still sitting with the insurer, and unlike most unclaimed assets in India this one has an end date, so it is worth knowing where the clocks are before assuming there is no rush.
Last reviewed: 27 August 20268 min readReviewed by Preetesh Maloo, CA

The short answer

Search the insurers' own websites, one at a time. Every insurer must publish a searchable list of unclaimed amounts of Rs 1,000 or more, and you match a record on any two of policy number, PAN, name or date of birth. There is no central search: the regulator's Bima Bharosa portal only links out to each insurer's list. An amount counts as unclaimed once it has stayed unpaid for twelve months past its due date because the insurer could not reach anyone, and after ten years it is transferred to the Senior Citizens' Welfare Fund. You claim it through the insurer either way, for twenty-five years from the transfer. Life insurers held about Rs 20,062 crore of unclaimed money at the end of FY24.

Is this your situation? Get a senior CA on it.

Free 15-minute call. We tell you what applies to you and what it costs, then you decide. You stay abroad.

Senior CA who specialises in NRI tax · we deal with the tax officer, you don't

Chat with a CA on WhatsApp

There is no single search. You go insurer by insurer

Set expectations here, because this is where people give up. Every insurer must publish a searchable database of unclaimed amounts on its own website, covering anything of Rs 1,000 or more. There is no central search across all of them.

The regulator's Bima Bharosa portal is often described as one. It is not: it is a page of links to each insurer's own database. IRDAI has proposed building a genuinely centralised portal, which tells you plainly that one does not exist yet. So if you do not know which company held the policy, the job is working through the insurers one at a time, starting with whoever the family is likeliest to have used.

To match a record you need any two of the policy number, the policyholder's PAN, their name, or their date of birth. A policy number on its own will not do it.

One quirk worth knowing: the databases are refreshed only twice a year, as at 31 March and 30 September, so something recently unclaimed may not show yet. Entries stay visible even after the ten-year transfer to the Fund.

Twelve months makes it unclaimed. Ten years moves it

Two clocks run, and they do different things.

The first is short. An amount becomes an unclaimed amount once it is payable and has stayed unpaid for twelve months past its due date because the insurer could not contact anyone. That last part matters: a claim that is merely being investigated or disputed is not unclaimed and will not appear on the published list.

The second is the one that moves the money. Where an amount has been unclaimed for more than ten years, measured each year at 30 September, the insurer transfers it to the Senior Citizens' Welfare Fund by the following 1 March. At that point the insurer no longer holds it, though the insurer is still where a claim starts.

The twenty-five year deadline, and what else it catches

Once an amount reaches the Senior Citizens' Welfare Fund, the policyholder or nominee has twenty-five years to claim it, running from the date it was credited to the Fund. After that it escheats to the Central Government under Section 126 of the Finance Act 2015.

The important thing is that this is not an insurance rule. The same Fund takes unclaimed balances from Public Provident Fund accounts, Employees' Provident Fund accounts, and post-office savings including NSC, KVP, the Senior Citizens' Savings Scheme and Sukanya Samriddhi. Every one of them runs the same clock to the same escheat. A family chasing a forgotten PPF or EPF balance is on this deadline too.

AssetWhere it goesDeadline to claim
Bank depositsRBI's DEA Fund after 10 yearsnone
Company sharesIEPF, after 7 years of unpaid dividendnone
Insurance, PPF, EPF, small savingsSCWF after 10 years25 years from credit

So the reassurance that applies to a dormant bank account or shares in the IEPF, that the claim never expires, does not carry across to anything in the SCWF.

On timing, do not panic. The Fund only came into existence in 2016, and legacy balances were transferred in the year after, so the earliest possible escheat is around 2041. Even a policy that matured in the 1990s has most of its twenty-five years left. And escheat is not quite absolute: the section preserves a court's power to order otherwise, and lets the Central Government refund a late claim where it is satisfied there were genuine reasons for the delay.

What an NRI runs into that a resident does not

Finding the money is the easy half. Collecting it from abroad is slower, though less hopeless than insurers sometimes make it feel.

Which account it lands in follows the premium, not your passport. This is the fact most people get backwards, including most guidance. Where the claim or maturity is settled in foreign currency, because the premium was paid in foreign currency, the proceeds may be credited to an NRE or FCNR account and stay freely repatriable. It is only where premiums were paid in non-repatriable rupees that the payout goes to an NRO account, with the annual limit and the remittance paperwork that follow. Establish which one you are in before nominating an account, because the wrong answer costs you repatriability.

Insurers commonly want the original policy bond, which for an old policy is usually in a file in India. Where it is lost they will ask for an indemnity in its place. Some insurers also run a press-notice step, though that belongs to issuing a duplicate policy rather than to settling a claim.

Identity and address proof executed abroad generally has to be attested, through an Indian consulate or a notary.

And know your lever. The rules say plainly that no claim shall be rejected or closed for want of documents, and that where settlement runs late the insurer owes interest at bank rate plus 2 percent, payable on its own initiative rather than on request.

Once the money is released, the separate question is what India taxes on it and what the insurer withheld, which turns on whether the policy meets the Section 10(10D) conditions. That is worked through on tax and TDS on a life insurance maturity payout for an NRI.

If the policyholder has died

Where the policyholder is dead, the claim is a death claim rather than a maturity claim, and who may make it depends on the nomination.

A registered nominee claims directly. Where there is no nomination, or the nominee has also died, the insurer falls back on proof of entitlement, which is where a legal heirship certificate or a succession route comes in, and that is set out on the succession and legal heir page.

If you are not sure what the deceased held at all, start with the wider sweep on the estate discovery page rather than guessing at insurers one at a time.

What's involved

What the CA actually does

  1. 1

    We work out which clock you are on

    Whether the amount is still with the insurer or has already moved to the Senior Citizens' Welfare Fund changes who you approach and how much of the twenty-five years is left. That is the first thing to establish, not the last.

  2. 2

    We assemble a claim that will not bounce

    The bond or the indemnity in its place, identity and address proof attested in the form the insurer accepts from abroad, and the nomination or heirship position settled before filing rather than after a rejection.

  3. 3

    We sort where the money lands

    A non-resident payout needs an NRO account in the claimant's name. Where that account does not exist or has itself gone dormant, we deal with both together.

  4. 4

    We handle the tax and the repatriation

    What is taxable on a maturity or surrender differs from a death claim, and taking the proceeds out of India is a separate step with its own paperwork. We do both rather than leaving you with money you cannot move.

What to have ready

Documents you'll typically need

  • The policy number if you have it, or the policyholder's full name, date of birth and PAN
  • The original policy bond, or a note of the fact that it is lost
  • Death certificate, where the policyholder has died
  • Your identity and overseas address proof, attested
  • Your NRO account details for the payout

Your destination country can change the details

Requirements differ from one consulate, university and visa route to the next, how recent the figures must be, how long funds must have been held, and which certificates are mandatory. We assemble the documents around the exact checklist you're applying under. To see how India's tax treaty with your country of residence affects related filings, set your country below or compare all 46 countries.

References on this page

  • IRDAI Master Circular on Operations and Allied Matters of Insurers, 19 June 2024, which repealed the 2020 Master Circular on Unclaimed Amounts of Policyholders
  • An amount is unclaimed once payable and unpaid beyond twelve months from its due date, on account of non-contactability
  • Insurers must publish a searchable database of unclaimed amounts of Rs 1,000 or more on their own websites, matched on any two identifying fields, refreshed half-yearly
  • Bima Bharosa links to each insurer's database. It is not a central search, and IRDAI has proposed building one
  • Unclaimed amounts older than ten years as at 30 September transfer to the Senior Citizens' Welfare Fund by 1 March, and the claim is still made through the insurer
  • Senior Citizens' Welfare Fund Rules, 2016 also cover PPF, EPF and post-office small savings, so the deadline is not an insurance-only rule
  • Twenty-five years from credit to the Fund, then escheat to the Central Government under Section 126 of the Finance Act 2015, subject to a court order otherwise and to a discretionary late refund
  • IRDAI Master Circular on Protection of Policyholders' Interests, 2024: no claim shall be rejected or closed for want of documents, and late settlement carries interest at bank rate plus 2 percent, payable without being asked
  • Rs 20,062 crore unclaimed with life insurers at the end of FY24, per the IRDAI annual report

Frequently asked questions

Common questions

On the insurers' own websites. Each must publish a searchable list of unclaimed amounts of Rs 1,000 or more, and you match a record using any two of policy number, PAN, name or date of birth. There is no single national search. Bima Bharosa is a page of links to those individual lists, so if you do not know the insurer you work through them one at a time.

When it is payable, has stayed unpaid for twelve months beyond its due date, and the reason is that the insurer could not contact anyone. A claim being investigated or disputed does not count and will not appear on the list.

There is one, but it is not an insurance-only rule. After ten years the amount moves to the Senior Citizens' Welfare Fund, and you then have twenty-five years from that credit. The same Fund and the same deadline cover unclaimed PPF, EPF and post-office savings. After twenty-five years it escheats to the government, though a court can order otherwise and the government may refund a late claim where it accepts there were genuine reasons for the delay.

No. Insurers generally ask for an indemnity in place of the bond. Some run a press notice as well, though that belongs to issuing a duplicate policy rather than to settling a claim. And the rules say a claim shall not be rejected or closed for want of documents, which is worth quoting if you meet a wall.

Only if the premiums were paid in non-repatriable rupees. Where the claim is settled in foreign currency because the premium was paid that way, the proceeds can go to an NRE or FCNR account and stay freely repatriable. Settle which case you are in before you give the insurer account details, because the wrong one costs you repatriability.

Work through the larger insurers' unclaimed lists on any two of his name, date of birth and PAN, since there is no central search to run. If the wider question is what he held across everything, the estate discovery page is the better starting point, because insurance is one of several registries worth sweeping together.

The exceptions that change the answer

Where the general rule stops applying to you

Every rule below has a carve-out, a cut-off date or a condition that flips the answer. These are the ones that decide real cases.

EPF withdrawal exemption: continuous service

Right now: 5 years of continuous service

Where it works differently

Service is under 5 years
Four components are taxed separately: employer contribution and its interest as salary, employee contribution previously claimed under 80C reversed, and interest on employee contribution as other sources.
Rule 8 of Part A of the Fourth Schedule.
Employment ended for reasons beyond the employee's control
The 5-year condition is relaxed.
Proviso to Rule 8.
The account is inoperative
Interest continues to accrue and is taxable once the member leaves service.
Settled position; a live issue for NRIs with dormant accounts.

Commonly got wrong

  • EPF withdrawal is always tax-free. Only after 5 years of continuous service.An EPF withdrawal is tax-free only after five years of continuous service. Below five years, four separate components become taxable in different heads.

EPF interest that becomes taxable on high contributions

Right now: Interest on employee contributions above Rs 2,50,000 a year is taxable (Rs 5,00,000 where the employer makes no contribution)

Where it works differently

The member is an NRI with a dormant account
Interest continues to accrue, and an account becomes inoperative after 36 months without contribution, at which point the interest is taxable in India.
EPF Scheme rules plus settled tax treatment.
The member has left India
Indian tax on that interest still applies as India-sourced income, and the residence country may tax it too.
s.9 read with the relevant treaty.

Commonly got wrong

  • All EPF interest is tax-free. Interest on employee contributions above Rs 2.5 lakh a year has been taxable since FY 2021-22.Interest is tax-free up to Rs 2.5 lakh of employee contribution a year (Rs 5 lakh where the employer does not contribute). Above that it is taxable.

PPF for a holder who becomes an NRI

Right now: No new account as a non-resident. An account opened while resident can be continued and contributed to until its 15-year maturity, on a non-repatriation basis, but not extended. Partial withdrawal from the seventh year; premature closure on change of residential status after five years from the end of the year of opening, with interest recomputed 1% lower.

Where it works differently

The account reaches maturity while you are non-resident
It must be closed; the five-year extension a resident can take is not available. Proceeds are exempt in India under Section 10(11) and go to your NRO account.
Government Savings Promotion General Rules, 2018, Rule 4(3), applied by para 16 of the PPF Scheme 2019; extension is para 12 of the Scheme and is not available to a non-resident.
An account under the old 1968 scheme was extended on Form H, which did not ask residency status
The Department of Economic Affairs memo of 21 August 2024 (effective 1 October 2024) changed the interest treatment for those extended NRI accounts; check the current position before relying on continued interest.
The 2024 memo hit only 1968-scheme accounts extended on Form H.

Commonly got wrong

  • A PPF account closes automatically the day you become an NRI. That was a 2017 notification that the Department of Economic Affairs placed in abeyance in 2018 and never brought into force (https://dea.gov.in/budget-division/public-provident-fund-ppf-accounts-held-non-resident-regarding).You can keep your PPF to its 15-year maturity and keep contributing; you cannot open a new one or extend it.

A policy nobody ever collected on?

The search is free and you should run it yourself. Tell us what it turned up. A practising CA will work out which clock you are on and assemble the claim, on a free call, no obligation.

No card, no obligation. All certification and filing work is handled by ICAI-registered practising Chartered Accountants.