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We are living in a world of investment, as every other individual seeks to build wealth by making investments in stocks, bonds, mutual funds, insurance policies, or fixed deposits. There are various reasons for having Unclaimed Investments of Rs 21,500 crore in life insurance with LIC, Rs 62,000 crore in bank deposits, and Rs 48,500 crore in Employees Provident Fund (EPF) as of now in India.
What if your investment that you simply just forgot about falls under these numbers? Investments, when untouched for several years, become forgotten or lost. Nobody would want to let their hard-earned money go, that’s when you need to claim your investment from the financial institutions. Despite the assets stay protected by the government until you claim to recover them, reclaiming them can sometimes be frustrating.
In this article, we will help you through the process of claiming lost investments from financial institutions in India.
Funds or assets that have gone unclaimed, inactivated, or unutilized by the investor for a long time fall under the term “Lost Investments”. These may include:
Financial Institutions include banks, insurance companies, pensions, funds, etc, that provide financial services to individuals, businesses, or governments. They manage investments, offer financial products, and securely conduct financial transactions that help to manage the money.
Their services include saving, borrowing, investing, and exchanging currency services. Banks, Insurance Companies, and Investment Firms are some examples of Financial Institutions. Financial Institutions benefit growth and manage risks, making them essential for a healthy economy.
In the case of Lost investments, financial institutions play an important role in safeguarding the unclaimed investment. These institutions keep records of investments and make sure the funds are either claimed or held securely until claimed by the investor. When investments are forgotten or remain unclaimed, these institutions offer a structured process to help you trace and recover them.
Financial institutions work to keep your unclaimed investments secure. If you forget about an investment, reach out to the institution for help in reclaiming your money, as long as you can prove your ownership/interest in the investment.
Before the process of claiming your Unclaimed Investments, here are the reasons behind the growth of Unclaimed Investments that you need to know:
No Update on Contact Information:
On moving to a new place, investors often forget to update the changed details with the financial institution. This leads to losing track of their investments while also missing important information.
Forgetting Investments:
Investors after investing forget about it leading the investment to be unclaimed.
Investor’s Death:
In many cases, investors pass away without informing his/her family about the investment. Also because of improper records, nobody realizes the investment is going unclaimed.
Dormant or Inactive Accounts:
Investments when there is no activity for an extended period become dormant. Until redeemed or claimed, it stays unclaimed.
Following are the ways to identify Lost Investments:
Review Old Financial Records
Go through old documents such as bank statements, receipts, and investment papers to determine if you may have forgotten about specific investments. Inspect your correspondence with financial institutions; unopened letters are also good prospects.
Online Investment Portals
Many banks have their online platforms for tracking investments allowing users to search for inactive accounts.
Use KYC Record
A simple search for an unclaimed investment such as mutual funds, stocks, or bonds becomes easier when the investor has completed the KYC (Know Your Customer) registration.
Contact Financial Institutions
If this proves to be of no assistance in locating the investment, get in touch with the financial institution in which, to the best of your knowledge, an investment was entered. They can assist in tracing and recovering your money.
If you’ve identified an investment that you think is lost or unclaimed, follow these steps to retrieve the lost investments from financial institutions.
Identify the type of Investment
Different investment has different claim processes. Thus, the first step is to determine the type of investment, as the process to claim lost investment depends on its type.
Collect Documentation
You will have to assemble all papers that establish your ownership of the investment once you know what type of investment it is. Some paperwork you are required to submit includes:
Proof of identity: Aadhaar card, PAN card, passport, voter’s card, etc.
Proof of address: Utility bills, bank statements, etc.
Proof of investments: Policy papers, account statements, mutual fund folios, etc.
Death certificate (in the event of an investor’s death): This is needed only when the original investor has died, and a nominee or legal heir is making the claim.
KYC: The KYC registration details for mutual funds or investment products, if applicable.
Contact the Financial Institution
After collecting your documents, reach out to the organization you invested in. The process is decided by the kind of institution or investment in question.
Banks: Contact the bank branch in which the fixed deposit was opened if you have unclaimed fixed deposits that are dormant. You will have to present all listed documents and fill out certain forms to make the claim.
Insurance Companies: For unclaimed insurance policies, contact the insurance company’s customer service and give them your policy number and identity proof documents.
Mutual Fund Companies: For mutual fund investment claims, you can approach the Asset Management Company where an investment was made. Some AMCs allow you to make a claim online via their respective websites.
Pension Funds/Provident Funds: If you have unclaimed PF or pension fund balances, reach out to the Employees’ Provident Fund Organization or the respective pension authority.
For each of these institutions, you are often required to fill out a claim form, attach proof, and sometimes undergo identification or verification.
Staging a Grievance Redressal Proceeding
If the financial institution is wholly unresponsive to your claims, you may seek redress through the Grievance Redressal section.
The regulatory framework of India mandates financial entities to set up a grievance redressal mechanism. If you’re unable to settle the issue regarding your claim with them, you may lodge a formal complaint. If no reply or action is instigated within a reasonable period, you can approach:
Seek Legal Advice, If Necessary
If none of this was helpful, then, seeking legal advice may be a reasonable decision. Speak with a finance lawyer regarding the recovery of lost investments.
While learning how to redeem lost investments is one thing, preventing investments from being lost is something one must learn to do. Some suggestions to prevent the lost investment include:
Keeping Track of Your Investments: Ensure you maintain an accurate record of all investments made and should comprise key information, such as account numbers, policy numbers, and maturity dates.
Update Your Contact Information: The minute you change an address, phone number, or email, you should notify financial institutions so that they send you all notices related to your investments.
Check Investment Status Periodically: While this may be a long-term investment, you should take a look at it now and then just to make sure everything is in order.
Name a Beneficiary: Whenever you are purchasing life insurance or a similar financial product, always make sure to select a beneficiary. This will make it much easier for your heirs when it comes to making a claim.
Consult with our experts at Enterslice and recover your unclaimed dividends and other lost investments effortlessly.
Recovering lost investments might feel difficult, but you can do it with the right help. In India, financial institutions must keep records that can help you find unclaimed funds. These could be from an old life insurance policy, a dormant bank account, or unclaimed mutual funds. You can follow a clear process to find, record, and claim your investments.
It’s never too late to organize your documents, stay in touch, and make sure your contact information is current with financial institutions. If you’re trying to recover lost investments, reach out to the relevant institution and keep following up until you get what is rightfully yours. If you are looking for expert assistance in reclaiming your lost investments from financial institutions, visit www.enterslice.com.
Lost investment refers to any of the various financial investments that have reached the extent of being forgotten or left unclaimed for a long. These include unclaimed insurance policies, dormant bank accounts, unredeemed fixed deposits, unclaimed dividends of mutual funds, and pension funds.
It is the responsibility of any financial institution, bank, insurance firm, actuation funds, and so on to keep those unclaimed investments safe. They keep records and provide avenues through which investors can trace and claim the funds that have been lost.
Several reasons can lead to the non-claiming of some investments. For some investors, it is simply forgetting about the investment; for others, it is because of a change of residence without leaving their forwarding address; for others still, it is simply because someone died suddenly without leaving anything for their family to collect from the financial institutions. Also, mere inactivity leads to unclaimed funds.
Some Unclaimed investments can be listed as: life insurance policies, dormant bank accounts, fixed deposits, mutual fund dividends, pension or provident fund balances, and government bonds or securities.
Financial institutions are those undertakings that offer financial services to other individuals or institutions or the government. Examples include banks, insurance companies, mutual fund companies, pension funds, etc.
In case of the death of the original investor, their nominee or legal heir may claim the investment by submitting a death certificate and other required documents.
No, there is no specific time limit to claim unclaimed investments. However, dormant accounts or investments may be transferred to a government fund after a certain period. It is better to claim them sooner rather than later.
Some processing charges may apply depending on the kind of investment and the institution, but mostly the claims process is free.
First of all, get in touch with the bank where you had the savings account. You will have to provide them with your details: name, address, and any account numbers you recall. If you have lost account details, the bank has to help you find the account through other identifiers like Aadhaar or PAN numbers.
Yes, even though the fixed deposit matured five years ago, you can still withdraw the investment. Please contact the bank in which the fixed deposit was made. Identification should be provided and necessary claim forms filled in. Upon checking the details, the bank will pay the funds.
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