The Economics of Death
Unclaimed Money and Insurance Claims
How large amounts of money in bank accounts, insurance policies and investments go unclaimed after deaths, and India's efforts like UDGAM to help families find it.
When people die, their money sometimes goes unclaimed.
The scale
- Unclaimed bank deposits transferred to the RBI’s Depositor Education and Awareness Fund exceed 78,000 crore rupees, according to RBI reports around 2024.
- Unclaimed insurance money, shares and provident fund balances add more.
Why
- Families don’t know about accounts or policies.
- No nominee was registered.
- Paperwork is complex.
UDGAM
The RBI launched UDGAM in 2023, a portal to search for unclaimed deposits across banks.
Nominations
- Registering nominees makes claims easier.
- The Banking Laws (Amendment) Act, 2025 allowed up to four nominees for bank accounts.
Insurance claims
- Families must file death claims with certificates.
- Insurers’ claim settlement ratios are published by IRDAI.
Planning tip
Keep a list of accounts and policies, and inform family members.
The forgotten account
A daughter uses UDGAM to discover her late father's old fixed deposit that the family never knew about.
Thinking family money is always found after a death
Large amounts go unclaimed.
Key takeaways
- Unclaimed bank deposits exceed 78,000 crore rupees.
- Missing nominees and unknown accounts cause it.
- The RBI's UDGAM portal helps search.
- Registering nominees simplifies claims.
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