No proposal to utilise unclaimed LIC, EPFO funds for other purposes: Govt
New Delhi, July 22
The government has no proposal to utilise unclaimed funds lying with the Life Insurance Corporation of India and inoperative Employees' Provident Fund Organisation accounts for any purpose other than the existing mechanism.
In a written reply to the Lok Sabha, Minister of State for Finance Pankaj Chaudhary said that under the Insurance Regulatory and Development Authority of India (IRDAI) Master Circular dated June 19, 2024, unclaimed insurance amounts lying unclaimed for more than 10 years are transferred to the Senior Citizen Welfare Fund (SCWF), while there is no proposal to utilise such funds for any other purpose.
The minister said LIC had Rs 7,318.50 crore in unclaimed amounts as of March 31, 2026. This includes Rs 5,564.55 crore belonging to policyholders and Rs 1,753.95 crore as income accrued on those unclaimed amounts. The government also clarified that there are no unclaimed EPFO accounts, although inoperative EPF accounts held Rs 9,330.56 crore as of March 31, 2026.
The reply said LIC and EPFO are continuing efforts to identify beneficiaries and facilitate settlement of pending claims.
According to the government, LIC allows policyholders to search for unclaimed amounts through its official website and is contacting customers through letters, SMS, local agents, Bima Sakhis and credit bureau agencies to trace policyholders and nominees. LIC also participated in the Ministry of Finance's "Your Money-Your Right" campaign and has been running awareness advertisements across the country in multiple languages.
For EPFO, the government said inoperative accounts have been categorised based on KYC status, while a pilot project has been approved for the automatic settlement of Aadhaar-verified inoperative accounts with balances of Rs 1,000 or less. Under the initiative, the amount is credited directly to Aadhaar-seeded bank accounts without requiring fresh claims or documentation, and the model is proposed to be expanded to higher balance slabs after due diligence.
The government said outreach and awareness initiatives are also being undertaken through social media and Nidhi Aapke Nikat (NAN) 2.0 camps to help members identify and claim amounts lying in inoperative EPF accounts.
— ANI
Reader Comments
The government is right not to misuse these funds, but why is so much money stuck? I had an EPF account from my first job and it took me two years to track it and get the money transferred. Many people don't even know they have unclaimed amounts. The Nidhi Aapke Nikat camps are a good idea, but they need to be proactive—maybe send SMS reminders to everyone with inoperative accounts.
This is reassuring. Imagine if they started using our hard-earned PF money for some other scheme—that would be a disaster! The system is complicated though; my father had a small LIC policy and we didn't even know about it until a neighbor told us. More awareness needed in rural areas. The "Your Money-Your Right" campaign is good but should be amplified on TV and radio, especially in regional languages.
This is a classic case of government inefficiency. Why are there Rs 9,330 crore in inoperative EPF accounts? If they streamlined the process, people would claim their money. The automatic settlement pilot for small balances is a step forward, but why only for amounts up to Rs 1,000? That's a joke for most workers. Expand it to at least Rs 50,000 or more and make it seamless.
I'm glad they clarified that these funds won't be used for other purposes—that would be unethical. But the fact remains that people are losing their hard-earned money. I'm a working professional and I always track my PF transfers when I change jobs. But many in the informal sector don't even have Aadhaar-linked accounts. The government should make it mandatory for employers to help employees track unclaimed amounts.
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