Life assurance companies in the Republic are estimated to be holding between €10 and €20 million in unclaimed policies, according to the Irish Insurance Federation (IIF).
The Federation is urging people who may have left policies unclaimed to contact the relevant insurance companies before a deadline of March 2004.
The Unclaimed Life Assurance Policies Act, 2003, obliges insurers to try and contact policyholders in order to settle the unclaimed policies.
If policies remain unclaimed by March 2004, the proceeds will be transferred to the National Treasury Management Agency (NTMA) where they will be invested and used for social purposes.
However Ms Jennifer Hoban of the IIF said: "Policyholders will be able to access and encash their policy proceeds at all times, whether the unclaimed policy is with the insurer or the NTMA."
Ms Hoban said: "The IIF advises customers to contact their insurer as soon as possible if they believe that they have a policy that may affected by the legislation."
"This will ensure that the policy is not designated as 'unclaimed' and that the insurer has up-to-date contact details for the customer," she added.
Insurers are planning to send out letters in the coming months in an effort to contact policy holders. The IIF said its information helpline at 01 676 1914 will answer any queries on unclaimed policies.